Several major technology companies are investing billions into Thailand-based data centers as the country continues to emerge as an attractive hub for Big Tech.
TikTok, Google, Microsoft, and Amazon have announced plans to invest heavily in the country and elsewhere in Southeast Asia, leading to a new battleground for AI dominance in the region.
ByteDance-owned TikTok is investing $3.76 billion in data center infrastructure in Thailand, according to the Thai Board of Investment (BOI) Wednesday, Jan. 29, Reuters reported .
TikTok’s plans come amid a wave of global scrutiny on its Chinese ownership and data protection capabilities.
BOI secretary-general Narit Therdsteerasukdi said the investment marked a “significant step in enhancing Thailand’s digital and AI infrastructure.”
He added that it would help bring Thailand closer to becoming a regional hub.
TikTok’s Singapore unit said the investment would support the activities of affiliated companies through its Thai digital infrastructure project. Operations are due to start in 2026.
TikTok’s move follows a wave of high-profile tech investments in Thailand, as Amazon, Microsoft, and Google commit billions to the region.
In September 2024, Google revealed it was investing $1 billion in Thailand to build a data center and cloud region.
The investment looked to meet the increasing demand for cloud services and support AI adoption in Southeast Asia.
A Deloitte study projected that this investment could contribute approximately $4 billion to Thailand’s GDP by 2029 and create around 14,000 jobs annually between 2025 and 2029.
“Google’s investment in its data center and cloud region in Chonburi and Bangkok, respectively, coupled with growing Thai expertise in cloud computing and AI, are perfectly aligned with our national Cloud First Policy,” Paetongtarn Shinawatra, Prime Minister of Thailand, said in a statement .
“This synergy will accelerate the development of innovative digital services and, in turn, unlock economic opportunities and enhance the quality of life for all Thais,” he added.
In May 2024, Microsoft announced it was launching its first regional data center in Thailand. In January 2025, Amazon Web Services announced it was investing $5 billion in Thailand over 15 years.
Over the past few years, Thailand has emerged as a leading hub for data center infrastructure.
As more companies in Southeast Asia migrate to the cloud and adopt AI solutions, the demand for local data centers is increasing.
According to a 2023 report by e-Conomy SEA, the country is considered to have the second-largest digital economy in Southeast Asia and is expected to be worth $50 billion by 2025.
In addition, Krit Pimhataivoot, Head of Capital Markets at JLL Thailand, said an abundance of power availability and “attractive incentives from the BOI” are the key factors to Thailand’s data center growth.
Thailand has also introduced a range of tax incentives for global tech companies, including import duty and corporate tax exemptions.
The BOI’s incentives directly reduce set-up costs and regulatory barriers, making Thailand one of the most attractive places for Big Tech to invest in data centers.