Tech giant Google has announced a substantial investment exceeding $3 billion to establish data centers and cloud regions in Thailand and Malaysia.
This ambitious initiative aims to enhance the digital infrastructure of these Southeast Asian nations, responding to the burgeoning local data consumption and the increasing demand for advanced technologies like AI and cloud computing.
“We are investing in cloud regions, data centers, and subsea cables across the region, building on our many years of work to bring cloud infrastructure closer to the people and organizations here” in this region that “holds great potential,” Alphabet and Google President and Chief Investment Officer Ruth Porat said.
Key Takeaways
- Google is investing over $3 billion in data centers and cloud regions in Thailand and Malaysia.
- The investment is projected to boost Thailand’s GDP by $4 billion and create 14,000 jobs annually by 2029.
- Malaysia’s data center will generate an estimated $3.2 billion in economic impact and create 26,500 jobs by 2030.
- Both initiatives aim to enhance local access to AI and cloud computing resources, aligning with regional digital strategies.
$1 billion investment in Thailand
Google‘s $1 billion (36 billion Thai baht) investment in Thailand is part of a broader strategy to develop digital facilities in Bangkok and Chonburi. This expansion is expected to significantly boost Thailand’s economy, with projections estimating an addition of $4 billion to the GDP by 2029 and the creation of approximately 14,000 jobs annually from 2025 to 2029.
Google’s first Thai data center will be located in Chonburi, an eastern province of Thailand. The facility will “help support the growing demand for Google Cloud and AI innovations, as well as popular Google services such as Google Search, Google Maps, and Google Workspace” in Thailand, according to Jackie Wang, Google’s Thailand country lead.
Thai Prime Minister Paetongtarn Shinawatra expressed strong support for the initiative, stating, “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.” She highlighted the potential for this investment to accelerate innovative digital services and improve the quality of life for citizens.
The initiative aligns with Google‘s commitment to enhancing local cloud capabilities, particularly for public sector organizations, small businesses, and startups. Establishing local cloud regions aims to provide crucial controls for security, data residency, and compliance, ensuring high standards for data handling.
$2 billion Google expansion in Malaysia
On the heels of its Thai announcements, Google also broke ground on a $2 billion data center and cloud region in Malaysia’s Elmina Business Park. This project is expected to generate over $3.2 billion in economic impact by 2030, creating approximately 26,500 jobs.
Utama Zafrul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, emphasized the benefits of this development, saying, “These facilities will not only empower our manufacturing and service-based industries – particularly the small and medium businesses (SMBs) – to leverage advanced technologies like AI and cloud computing, but also enhance our industries’ capacity to move up the global value chain.”
In addition, Google has partnered with Dagang NeXchange Berhad (DNeX) to deliver next-generation sovereign cloud solutions, particularly for regulated industries such as public services, healthcare, and energy. Google’s new facilities will employ energy-efficient water-cooling technology, reducing carbon emissions by 10%.
Ruth Porat, President and Chief Investment Officer of Alphabet and Google, reinforced the company’s commitment to sustainability: “We will continue our responsible stewardship of natural resources by improving community watershed health and ecosystems in Malaysia and helping to drive local adoption of renewable energy sources.”
Why Southeast Asia?
Southeast Asia’s digital economy, growing 1.7 times faster than gross merchandise value, delivered $100 billion in revenue in 2023, according to e-Conomy SEA 2023. E-commerce remains the power driver, but other leading sectors in the digital economy are transport and food, online travel services, online media and financial services.
Thailand’s digital economy is the second-largest in Southeast Asia and is expected to reach $50 billion by 2025, Google, Temasek and Bain & Company said in a 2023 report by e-Conomy SEA.
Google has been stepping up its investments in Southeast Asia. In June, it announced plans to increase its data center and cloud spending in Singapore to over $5 billion, up from $850 million in 2018.
Other tech giants, including Amazon, Apple, Microsoft, and Nvidia, are also expanding their presence. Malaysia is becoming a key data center hub, with YTL Power and Nvidia collaborating on an AI-powered facility in Johor. Amazon revealed a $9 billion investment in Singapore, while Microsoft plans to spend around $4 billion on infrastructure.
