Thailand’s National Digital Economy and Society Commission envisions the digital economy potentially constituting an impressive 30% of the nation’s Gross Domestic Product by the year 2027.
Google plans to invest $1 billion in Thailand. This will help build digital infrastructure, including a new data center. The move aims to support 14,000 jobs in the kingdom.
The new hubs in Bangkok and Chonburi are for cloud computing. This is to meet the growing demand in Southeast Asia, Google said in a statement.
Google’s investment comes after Microsoft’s announcement in May. Microsoft plans to create Thailand’s first data center region. This will boost cloud and artificial intelligence infrastructure.
“These investments will empower Thai businesses, innovators, and communities,” Ruth Porat said. She is the president and chief investment officer of Google and its parent company Alphabet.
The investment details were shared after a meeting in Bangkok. Porat met with Thai Prime Minister Paetongtarn Shinawatra. Shinawatra called it proof Thailand is becoming a major digital hub in Southeast Asia.
The data center will be in Chonburi, a major industrial area. The cloud facilities will be in Bangkok itself.
Google’s expansion in Thailand will add $4 billion to the kingdom’s GDP by 2029. It will also support 14,000 jobs between 2025 and 2029, the company said. This is based on a report from consultancy Deloitte.
The announcement comes a year after Shinawatra’s predecessor Srettha Thavisin’s trip to New York. Thavisin sought finance from Google, Microsoft, and Elon Musk’s Tesla.
Thailand is Southeast Asia’s second-largest economy. But its tech sector has lagged behind Singapore and Indonesia.
The Thai economy has focused on traditional manufacturing, agriculture, and tourism. It has struggled to recover from the Covid-19 pandemic.
The government hopes investment from Google and Microsoft will modernise the kingdom’s economy. They want to diversify it.
Thailand’s Office of the National Digital Economy and Society Commission has said the digital economy could contribute as much as 30 per cent of GDP by 2027.
Across the region, governments are competing for US tech dollars. Vietnam is trying to move up the value chain from its traditional base.
Vietnam hopes to benefit from the US’s move to reduce dependence on China. This includes high-tech chips.
And last week, Vietnamese state media reported that Musk’s SpaceX plans to invest $1.5 billion in the communist country.
