Google to spend $1 bln in Thailand on digital infrastructure

NEW YORK

Google plans to invest $1 billion to build digital infrastructure in Thailand, including a new data center, the U.S. tech giant has announced.

The new hubs in Bangkok and the industrial area of Chonburi are intended to help meet growing demand for cloud computing in Southeast Asia, the company said.

Google's investment comes after Microsoft announced in May that it would create Thailand's first data center region to boost cloud and artificial intelligence infrastructure.

The investment's details were unveiled after a Bangkok meeting between Ruth Porat, president and chief investment officer of Google and its parent company Alphabet and Thai Prime Minister Paetongtarn Shinawatra.

The data centre will be located in Chonburi, a major industrial area southeast of Bangkok, while the cloud facilities will be in the capital itself.

Google's expansion in Thailand will add $4 billion to the kingdom's GDP by 2029 and support 14,000 jobs between 2025 and 2029, the company said, citing a report from consultancy Deloitte.

The announcement comes a year after Shinawatra's predecessor Srettha Thavisin made a major push for investment from U.S. tech giants during a trip to New York, seeking finance from Google, Microsoft and Elon Musk's Tesla.

Thailand is Southeast Asia's second-largest economy, but its tech sector has lagged behind the likes of Singapore and Indonesia.

The Thai economy, long focused on traditional manufacturing, agriculture and tourism, has struggled to bounce back from the COVID-19 pandemic.

The government hopes investment from Google, Microsoft and their ilk will diversify and modernise the kingdom's economy.