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Thailand is emerging as a major region for establishing AI data centers and producing the necessary components to power them

Thailand Commerce Minister Pichai Naripthaphan said Nvidia plans to invest in the country, as reported by Bloomberg News on October 22.

The US-based chip company will announce its investment plan during Nvidia’s CEO Jensen Huang’s visit to Bangkok in December.

However, Pichai Naripthaphan did not provide much information regarding the investment plan by Nvidia.

The Nvidia investment is seen as a significant technological boost for the country.

In recent years, Thailand has received tech investment from various tech giants.

Thailand Received Tech Investments from Other Tech Gaints

These companies include Amazon.com Inc., Google, and Microsoft which constructed data centers and other cloud infrastructures. These companies made multi-billion dollar investments.

In the interview with Bloomberg late Monday, Pichai suggested that Nvidia’s investment could lead to more major investments through “related clusters.”

Thailand, Southeast Asia’s second-largest economy, competes with other neighboring countries to attract investments from major tech players.

Thailand Competes with Malaysia and Singapore

Thailand is competing with Malaysia and Singapore for the automobile and electronics industry. The country seeks to boost its growth, which averaged less than 2% during a decade of military-backed governance.

Thailand Emerges As Major Region for AI Data Centers

Thailand is emerging as a major region for establishing AI data centers and producing the necessary components to power them.

“The outlook for the Thai economy is bright and this is only the beginning,” Pichai said.

Nvidia is expanding its company across various regions. It has partnered with Singapore telco provider Singtel to implement AI capabilities in its data centers across Asia.

In the second quarter, Nvidia said it will team up with the telecommunications firm Indosat Ooredoo Hutchison. This aims to enhance local telecommunications infrastructure and digital talent.

There has been a significant increase in foreign investment commitments this year. This is specifically the establishment of data centers and printed circuit board manufacturing.

According to reports, the investment commitments have surged by 42% to 722.5 billion baht ($21.6 billion) in the first nine months of 2024 as compared to last year.