Microsoft announces to build its first data center in Thailand

On May 1, 2024, Microsoft announced that it would open a regional data center in Thailand. Microsoft’s Chairman and CEO Satya Nadella announced the same at the Microsoft Build: AI Day in Bangkok.

Notably, the gathering included Thailand’s Prime Minister Srettha Thavisin, 200 developers, and business and technology minds in the country.

In its recent blog post, Microsoft added that the data center in Thailand would be crucial in facilitating enterprise-grade reliability, performance, and compliance with data residency and privacy standards.

Microsoft wants to capitalize on the growth of AI-driven transformation with its first data center in Thailand

With this move, the Redmond giant is planning to capitalize on the growing demand for cloud computing services in Thailand. Microsoft now becomes the third US tech giant to commit to building new AI infrastructure and cloud in Thailand.

Earlier, Google and Amazon Web Services (AWS) also committed investments for similar purposes in Thailand. The company also committed to offering AI skills to 2.5 million citizens in the Association of Southeast Asian Nations (ASEAN).

This includes several countries like Thailand, Malaysia, Vietnam, Indonesia, and the Philippines. Microsoft further said that it would achieve this goal by 2025.

Talking to Bangkok Times, a close source familiar with Microsoft adds that the investment amount would be $1 billion. And, the data center will be located in the Eastern Economic Corridor (EEC) in Thailand.

Statement by Satya Nadella and Thai PM Srettha Thavisin

Talking at the Microsoft Build: AI Day, Satya Nadella said:

Thailand has an incredible opportunity to build a digital-first, AI-powered future. The new data centre in Thailand, along with other investments the company is making in cloud and AI infrastructure, as well as AI skills development, build on Microsoft’s long-standing commitment to the country and will help Thai organisations across the public and private sectors drive new impact and growth.

The Thai Prime Minister also addressed the gathering and added:

Our ‘Ignite Thailand’ vision for 2030 aims to achieve the goal of developing the country’s stature as a regional digital economy hub that significantly enhances our innovation and R&D capabilities while also strengthening our tech workforce. Today’s announcement with Microsoft is a significant milestone in the journey of our ‘Ignite Thailand’ vision – one that promises new opportunities for growth, innovation, and prosperity for all Thais.”

Let’s not forget that Microsoft is also teaming up with Thailand’s National Cyber Security Agency to provide information on internet safety cyber threats, etc. The company will also offer guidance to strengthen Thailand’s cybersecurity in the era of AI.

This is not the first time the company announced investment in Asia. The company recently announced to invest $1.7 billion to build AI infrastructure and cloud computing in Indonesia. Moreover, it would also invest $2.9 billion in Japan for the expansion of the same.

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