Google has announced a $1 billion investment into Thailand to establish its first data center in the country and enhance cloud infrastructure.
This strategic move is part of Google’s broader expansion in Asia, emphasizing Artificial Intelligence (AI) at its core amid rising competition from tech giants like Microsoft and OpenAI. The new data center to be located in Chonburi an Eastern province of Thailand, will support the increasing demand for Google Cloud services and AI innovations.
Speaking on the strategic expansion, Google said,
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“Google’s cloud and data center infrastructure in Bangkok and Chonburi will help meet the growing demand for Google Cloud capabilities and AI innovations, and the company’s popular digital services such as Search, Maps, and Google Workspace”.
The investment would create an average of 14,000 jobs annually until 2029, Google noted.
Google’s Thailand country lead Jackie Wang, via a blog post, highlighted that this investment is about more than infrastructure; noting that it aims to create new opportunities for Thai businesses, educators, and the broader population.
“Beyond developing infrastructure, the $1 billion investment from Google into Thailand is also about unlocking new opportunities for businesses, educators, and all Thais. As AI transforms industries, it is more important than ever to educate and upskill Thais to use this technology”, she added.
Google via a report had highlighted that Thailand, the second-largest digital economy in Southeast Asia, is expected to reach $50 billion by 2025, as the company positions itself to capitalize on this growth. Notably, Google’s investment in the Southeast Asian country comes as the tech giant faces pressure from its rival tech giants in both AI and cloud computing.
Recall that last week, the tech giant filed an antitrust complaint with the European Commission, accusing Microsoft of employing unfair licensing contracts to suppress competition in the lucrative cloud-computing industry.
Google in the lawsuit claimed that Microsoft’s widely-used products, including Windows Server and Microsoft Office, create obstacles for clients, making it challenging to utilize alternatives to Microsoft’s Azure cloud infrastructure. The complaint asserts that the limitations imposed by Microsoft’s cloud licensing prevent customers from easily migrating their workloads to competing cloud services, despite the absence of any technical barriers to doing so.
The lawsuit highlights Google’s ongoing efforts to protect its competitive position globally, especially its cloud computing sector. By establishing its first data center in Thailand,
Google strengthens its foothold in Southeast Asia, a rapidly growing market for digital services. This expansion allows the tech giant to tap into the region’s increasing demand for cloud and Al solutions, positioning it as a leader in the area.
Also, as Al becomes central to the global tech landscape, Google’s investment in Al infrastructure through its data center provides a competitive edge over rivals like Microsoft and OpenAl. It reinforces Google’s positioning as a leader in cloud and Al technologies, allowing it to scale its innovations and offer them to more clients in the region.