Google is collaborating with Gulf Energy, owned by Thailand billionaire Sarath Ratanavadi, to provide Google Distributed Cloud services in that country.
Alphabet Inc.’s Google has announced that it is planning to invest $1 billion in developing data centers in Thailand to expand cloud and artificial intelligence infrastructure in Southeast Asia.
The company will expand its facilities in Bangkok and Chonburi, a province southeast of the capital. The prime minister of Thailand, Paetongtarn Shinawatra, states that the national Cloud First Policy of Thailand is in line with the investment made by Google in its data center and cloud area located in Chonburi and Bangkok.
The investment will help grow GDP by $4 billion and support 14,000 employees yearly for the next five years. The facilities in Bangkok and Chonburi will meet the growing demand for cloud computing skills and AI advancements while encouraging users to use its digital products like Google Workspace, Maps, and Search. This collaboration will promote the development of cutting-edge digital services, give Thai people better access to artificial intelligence apps, provide opportunities for businesses, and improve the quality of life in Thailand.
The announcement of the investment by Google highlighted the efforts made by the Southeast Asia government to attract multinational technology companies. The region was once a tech hinterland but is now a growth opportunity for big giant companies like Apple Inc., Microsoft Corp., Nvidia Corp., and Amazon.com Inc., looking to invest billions of dollars to grow their AI data centers from Thailand and Malaysia to Singapore and Indonesia.
Malaysia is now the data center hub with the fastest growth rate in the region. The AI-powered data center was developed in the southern Malaysian state of Johor, located north of Singapore, through a partnership between Nvidia and the billionaire Jensen Huang’s YTL Power.
Alphabet and Google President and Chief Investment Officer Ruth Porat said that they are investing in infrastructure, digital skilling, and sustainability to develop high-value jobs and bring the advantages of AI to local communities and businesses. It will help Malaysians and companies to innovate, expand, and fully accept the digital age.
Google investing millions of dollars in Malaysia and Singapore is a highly systematic, deliberate strategy to increase cloud and artificial intelligence awareness and usage. In May, Amazon revealed plans to invest $9 billion in Singapore, and the CEO of Microsoft presented an action plan to spend roughly $4 billion to construct data centers and other infrastructure.
Google is collaborating with Gulf Energy, owned by Thai billionaire Sarath Ratanavadi, to provide Google Distributed Cloud services in that country. Together, the two plan to expand the Google Cloud ecosystem, involving future ventures into cybersecurity and artificial intelligence.
Apart from its projects in Thailand, Google has started building a $2 billion cloud infrastructure and data center project in Elmina Business Park in Selangor, located north of Kuala Lumpur. The project will help grow the economy of Malaysia by more than $3.2 billion and create 26,500 jobs by 2030.
Additionally, Google Cloud announced a collaboration with Dagang NeXchange Berhad (DNeX) to support the data center facility in Malaysia. DNeX will give cloud solutions in Malaysia to meet the growing needs of digital businesses in regulated industries like energy, healthcare, and public services.
Google has increased its investments in Southeast Asia to over $5 billion to grow its cloud and data center infrastructure in Singapore. It is five times more than what it spent in 2018 ($850 million).
Globally, governments are attempting to find a middle ground between protecting digital sovereignty and attracting outside investment. While they are taking advantage of the power and expertise of multinational corporations to help develop AI and cloud infrastructure, they are also trying to maintain their citizens’ data and grow local IT companies.