Microsoft on Wednesday announced its first data centre investment in Thailand to capitalise on the growth of AI-driven transformation in Southeast Asia.
Chairman and chief executive officer Satya Nadella made the announcement in front of some 2,000 developers and business and technology leaders at the Microsoft Build: AI Day in Bangkok. The event was also attended by Prime Minister Srettha Thavisin.
The commitments build on a memorandum of understanding Microsoft signed earlier with the government to help realise a digital-first, AI-powered future.
“We will invest our first data centre in Thailand,” said Mr Nadella.
The announcement came a day after Mr Nadella said the US software company would invest $1.7 billion to build cloud computing and artificial intelligence infrastructure in Indonesia. He is scheduled to conclude his three-country Southeast Asian tour in Malaysia on Thursday.
A source who is familiar with Microsoft said the Azure data centre in Thailand would be located in the Eastern Economic Corridor (EEC) with an investment estimated at $1 billion. It will be one of about 300 Microsoft data centres worldwide.
“Thailand has an incredible opportunity to build a digital-first, AI-powered future,” Mr Nadella told his audience in Bangkok.
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, he said.
Microsoft is the latest US tech titan announcing a significant commitment to build new cloud and AI infrastructure in Thailand after Amazon Web Services and Google. The move is part of the company’s Asia Pacific expansion strategy to capitalise on the AI era and also minimise geopolitical risk.
Earlier Microsoft announced it would invest $2.9 billion over the next two years to expand hyperscale cloud computing and AI infrastructure in Japan.
Mr Srettha told the gathering that the Microsoft announcement emphasises Thailand’s strategic importance in Asean.
“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,” he said.
According to research by the management consultancy Kearney, AI could contribute nearly $1 trillion to Southeast Asia’s gross domestic product by 2030, with Thailand poised to capture $117 billion worth of the total.
According to Microsoft, the Thai data centre will expand the availability of hyperscale cloud services, offering enterprise-grade reliability, performance and compliance with data residency and privacy standards.
It is a response to growing demand for cloud computing services in Thailand from businesses and public sector organisations. It will also allow Thailand to capitalise on the significant economic and productivity opportunities presented by AI technology
Microsoft has also committed to provide 2.5 million people in Asean with AI skills by 2025, covering Thailand, Indonesia, Malaysia, the Philippines and Vietnam. More than 100,000 people in Thailand are expected to benefit.
In the developer community, a new initiative known as AI Odyssey is expected to help 6,000 Thai developers become AI subject matter experts by learning new skills and earning Microsoft credentials.
Thailand is a rapidly growing market on GitHub, the Microsoft-owned software development, collaboration and innovation platform. More than 900,000 Thailand-based developers used GitHub in 2023, representing 24% year-on-year growth.
Mr Naddella also said that many Thai organisations were using Microsoft’s generative AI-powered solutions, including Advanced Info Service Plc, the National Health Security Office, SCBX Plc and the Council of State.
Thailand is now ready for AI and the government has moved to fully support the AI industry, said Mr Srettha.
The country’s digital infrastructure is among the strongest in the region, including comprehensive broadband internet, mobile connectivity, 5G and an international submarine cable network, he said.
The second phase of the national AI strategy and action plan for 2024-27 will further unleash the power of AI and cloud computing through projects to strengthen the AI ecosystem, he added.
The Board of Investment also has developed incentive packages crafted specifically to help foster digital-related activities. As well, the premier said, the country has committed to provide at least 9 gigawatts of renewable energy through the Utility Green Tariff programme by 2030.
Attaporn Limpanyalert (left), deputy secretary-general of the National Health Security Office, discusses how the organisation uses AI to support medical services, with Microsoft CEO Satya Nadella at the Queen Sirikit National Convention Center on Wednesday. (Photo: NHSO)