Microsoft has announced its first investment in a cloud and AI data center in Thailand.
Key takeaways
- Microsoft announced the development of its first cloud and AI data center investment in Thailand.
- Chairman and chief executive officer Satya Nadella made the announcement at the Microsoft Build: AI Day in Bangkok.
- The new cloud and AI infrastructure center will bring AI skilling opportunities for 100,000 people.
The announcement was made by the Chairman and chief executive officer Satya Nadella in front of some 2,000 developers and business tech leaders at the Microsoft Build: AI Day in Bangkok.
The initiative’s main goal will be to help develop the AI and tech industry in the country.
Satya Nadella, Chairman and CEO, Microsoft stated “Our new datacenter region, along with the investments we are making in cloud and AI infrastructure, as well as AI skilling, build on our long-standing commitment to the country – and will help Thai organizations across the public and private sector drive new impact and growth
The new cloud and AI infrastructure center will bring AI skilling opportunities for 100,000 people.
Microsoft also announced a broader commitment to provide AI skilling opportunities for 2.5 million people in the Association of Southeast Asian Nations (ASEAN) member states by 2025. This training and support will be delivered in partnership with governments, nonprofit and corporate organizations, and communities in Thailand, Indonesia, Malaysia, the Philippines, and Vietnam.
Microsoft will work on the initiative along with the Royal Thai Government amid the signing of a memorandum of understanding (MoU) to develop the first cloud and AI data center in Thailand.
Several other organizations in Thailand are working with Microsoft to explore new possibilities with AI. They include the nation’s largest privately held company, Charoen Pokphand Group, and leading petrochemical and refining business, PTT Global Chemical Public Company Limited.
Microsoft also collaborates with Thailand’s National Cyber Security Agency to provide information on internet safety, cyber threats and vulnerabilities, and other related guidance to enhance the nation’s cybersecurity posture in the AI era. The Ministry of Finance, meanwhile, is using the power of AI to enhance cross-agency data collaboration, which will unlock deeper insights that support policy development towards a more financially inclusive economy for Thailand.
Prime Minister Thavisin said “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,” said Prime Minister Thavisin.
A fast growing market in Thailand
Over the last few years the AI market has been growing rapidly in Thailand. According to Statista, The market size of the artificial intelligence market is projected to reach US$951.10m in 2024. The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.55%, resulting in a market volume of US$4,292.00m by 2030.
According to research by Kearney, AI could contribute nearly US$1 trillion to Southeast Asia’s gross domestic product by 2030, with Thailand poised to capture US$117 billion of this amount.
What are the potential windfalls for Thailand ?
Improved connectivity: The data center will enhance Thailand’s connectivity infrastructure, providing faster and more reliable internet services for businesses and individuals.
Boost to the technology sector: The establishment of a data center will support the growth of the local technology sector by encouraging innovation, collaboration, and knowledge sharing among tech companies.
Foreign investment attraction: The presence of a state-of-the-art data center can attract foreign companies looking to expand their operations in Thailand. This can lead to increased foreign direct investment, bringing in capital and expertise.
Data security and privacy: The data center will prioritize high-level security measures to protect sensitive data, fostering trust among businesses and consumers. This can result in increased confidence and utilization of digital services.
Catalyst for research and development: The data center can serve as a hub for research and development activities in areas like artificial intelligence, big data analytics, and machine learning. This can fuel innovation and contribute to technological advancements in the country.
Training and skill development: The data center will require skilled professionals to operate and maintain its infrastructure. This can lead to the development of training programs and initiatives to upskill the local workforce, contributing to a more tech-savvy workforce in Thailand.
Sustainable technology practices: The data center can incorporate sustainable technologies, such as energy-efficient systems and renewable energy sources, leading to a reduced environmental impact and promoting sustainable practices in the technology sector.
Overall, the establishment of a data center in Thailand has the potential to drive economic growth, technological advancement, job creation, and enhanced connectivity, positioning the country as a regional hub for digital innovation.
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