Google announced this Monday an investment of 36 billion Thai baht, equivalent to $1 billion, for the creation of a new data center and the expansion of Google Cloud infrastructure in Thailand. This significant investment underscores Google’s commitment to growing artificial intelligence (AI) in the region, at a time when competition with companies like Microsoft and OpenAI is more intense than ever.
This data center, Google’s first in Thailand, will be located in the eastern province of Chonburi and will be instrumental in driving demand for Google Cloud and innovations in AI, as well as improving popular services such as Google Search, Google Maps and Google Workspace in the country. This was confirmed by Jackie Wang, Google’s leader in Thailand, in a post on the company’s official blog.
Boosting Thailand’s digital economy
Data centers are the backbone of the modern digital economy, enabling access to cloud computing technologies, offering storage, analytics and processing services over the Internet. Google’s investment will not only strengthen Thailand’s technological infrastructure, but also open new opportunities for businesses, educators and Thai citizens in general.
Wang highlighted that as AI transforms industries, it is crucial to educate and train Thais in the use of this technology. Google’s investment is aligned with the growth of Thailand’s digital economy, which is the second largest in Southeast Asia and is expected to reach $50 billion by 2025, according to a report by Google, Temasek and Bain & Company.
Facing competition in AI and cloud computing
Google’s focus on AI comes amid growing pressure from its competitors in the field of artificial intelligence and cloud computing. Although Google has been a leader in search engine technology globally, it faces a constant threat from the rise of generative AI tools like OpenAI’s ChatGPT and other emerging platforms like Perplexity.
Generative AI, a technology that Google pioneered with its research into transformative models, has led to a radical transformation in the way people search for information on the Internet, challenging its dominance in the field.
Additionally, Google has intensified its rivalry with Microsoft. Last week, the company filed an antitrust complaint with the European Commission, accusing Microsoft of using its dominant position in the cloud industry to undermine competition.
In summary
With its $1 billion investment in Thailand, Google reaffirms its commitment to the growth of artificial intelligence and cloud infrastructure in one of the most dynamic regions in Southeast Asia. As the company faces challenges in the generative AI landscape, this expansion represents a crucial step in maintaining its global leadership.
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