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31 January 2025

TikTok Makes $3.8 Billion Investment For Data Center Project In Thailand

The investment aims to bolster Thailand's digital infrastructure and support the national goal of becoming a Southeast Asian innovation hub.

BANGKOK -- TikTok will spend 126.8 billion baht ($3.76 billion) to launch a data center project in Thailand, according to the country's investment authorities. The Chinese-owned video content platform plans to provide data hosting functions to affiliate companies, Thailand's Board of Investment (BOI) said Wednesday.

TikTok Pte. Ltd, the Singaporean unit of China's ByteDance, is set to invest $3.8 billion in data hosting services in Thailand. The Thai Board of Investment announced the approval of TikTok's Thai digital infrastructure project on January 29, concurrent with the approval of a 3.25 billion baht ($96.4 million) project by Siam AI Corporation for AI cloud services.

“TikTok’s and Siam AI’s investments mark a significant step in enhancing Thailand’s digital and AI infrastructure and supporting the national goal of becoming a digital innovation hub in Southeast Asia,” said Narit Therdsteerasukdi, secretary-general of the Board of Investment.

TikTok plans to provide data hosting services to support the activities of affiliated companies, with operations slated to begin in 2026. Although the specifics remain unclear, it has not been specified whether TikTok will operate its own data centers or lease space from existing ones.

Reports surfaced last October, indicating ByteDance was considering establishing the Thailand data center to bolster cloud and AI services. TikTok's decision aligns with broader investment trends, as it has also previously invested heavily in AI initiatives across Southeast Asia, such as setting up AI hubs.

The digital infrastructure investment follows significant commitments from other tech giants. For example, Google announced its plans to invest $1 billion for data centers situated both within Bangkok and its neighboring coastal provinces, which are expected to create approximately 14,000 jobs. Meanwhile, AWS recently launched its cloud region and aims to invest $5 billion by 2037, and Microsoft also plans to build its own data center region.

Bridge Data Centres operates multiple facilities across Thailand and has previously worked with ByteDance. The burgeoning tech ecosystem is forecasted to grow substantially as hyperscalers increasingly look to Thailand for their digital infrastructure needs.

According to industry experts, TikTok's substantial investment reflects not just confidence in Thailand's rising status as a tech hub but also signals its competing commitment to maintain relevance amid regulatory scrutiny, especially from markets such as the US. Concerns over data privacy and security have pushed TikTok to tailor its operations to align with local regulations, most recently seen as the US government considers proposals for its operation.

With operations slated to commence by 2026, TikTok is positioning itself as a significant player within Thailand's digital market. The investment aligns with previous moves by the company, including its AI initiatives and recently unveiled ambitions to strengthen its presence throughout the Asia-Pacific region.

Overall, TikTok’s investment commitment is part of $5 billion worth of new initiatives approved by Thailand’s BOI, underscoring the competitive environment of tech corporations moving swiftly to secure and grow their footholds across Southeast Asia's innovative digital terrain.

While the Thai market welcomes these developments, the digital infrastructure also enhances its prospects of becoming influential within the ASEAN community. TikTok and Siam AI's involvement indicates potential momentum for data innovation, supporting the nation's digital economy goals.

Overall, as TikTok prepares to launch its substantial investment and operations, the move sheds light on its strategy to navigate the digital ecosystem across Southeast Asia—especially considering its substantial user base globally, which exceeds over one billion. The company has to perform well amid increasing pressures and competition, as other tech giants also stake their claims for strategic locations within the region.