Google invests $1bn in Thailand’s cloud future

Google is investing $1bn over the next five years to build its cloud and datacentre infrastructure in Thailand to meet the growing demand for cloud services in the kingdom.

A Deloitte study projects that the investment will add $4bn to Thailand’s GDP by 2029 and support an average of 14,000 jobs annually.

The new infrastructure, located in Bangkok and Chonburi province, which is about 100km from the capital, builds on Google Cloud’s Southeast Asian expansion strategy, first announced in 2022.

The expansion will provide high-performance, low-latency cloud services to enterprises, startups, and public sector organisations. It will also enable them to adhere to stringent security, data residency, and compliance standards.

Thailand’s newly minted prime minister, Paetongtarn Shinawatra, welcomed the investment, noting that Google’s commitment and the growth of Thai expertise in cloud computing and artificial intelligence (AI) are “perfectly aligned” with the nation’s cloud-first policy.

“This synergy will accelerate the development of innovative digital services and in turn unlock economic opportunities and enhance the quality of life for all Thais,” she added.

Google has operated in Thailand for nearly 13 years, serving clients such as Krung Thai Bank. In June 2024, it announced that Gulf Edge will operate the Google Distributed Cloud (GDC) service in the country to offer sovereign cloud services for critical industries.

This investment mirrors Google’s regional strategy. In neighbouring Malaysia, Google broke ground on a datacentre in Selangor as part of a $2bn investment. A partnership with Dagang NeXchange Berhad (DNeX) will deliver GDC services to Malaysian customers.

Karan Bajwa, vice-president for Asia-Pacific at Google Cloud, said the GDC will provide organisations with distributed cloud infrastructure, developer tools and AI services essential for digital transformation.

“In addition, we look forward to working with DNeX to address high-value AI use cases across their business, especially in semiconductor manufacturing, in line with the government’s ambition of elevating Malaysia's semiconductor ecosystem in the global value chain,” he added.

Beyond infrastructure, Google is focusing on environmental sustainability. In Malaysia, Google has launched its first water stewardship project, collaborating with the Petaling Jaya City Council and Global Environment Centre to restore the Taman Aman Lake. The initiative aims to improve the lake’s water quality and biodiversity through floating wetlands, the reintroduction of local aquatic species and sustainable waste management.

According to IDC, total spending on cloud services in Asia-Pacific, excluding Japan, will reach $282bn by 2025 in a market that has seen major suppliers upping their investments to keep pace with demand.