Microsoft Commits to Building Data Centre in Thailand, Pledges Nearly USD $3B in Investments to Malaysia, Indonesia

Tech giant Microsoft is expanding its presence in Southeast Asia, with Thailand, Indonesia, and Malaysia emerging as the biggest and earliest beneficiaries.

Just recently, the company, led by CEO Satya Nadella, announced plans to open a new regional data centre in Thailand, marking yet another significant milestone in the company’s ongoing commitment to the region. It comes three years after Microsoft first announced plans to build regional data centres in Malaysia and Indonesia.

If these ambitious plans push through, Microsoft will soon have three new data centres in Southeast Asia, in addition to the one in Singapore.

Igniting Thailand’s Digital Future

Microsoft’s planned new data centre in Thailand is part of the “Ignite Thailand” vision, which aims to create new opportunities for growth, innovation, and prosperity for all Thais. The data centre will specifically cater to the rising demand for cloud computing services in Thailand.

“Thailand has an incredible opportunity to build a digital-first, AI-powered future,” Nadella said in a statement following the grand announcement. He also added that Microsoft’s investment will create a significant impact in Thailand’s public and private sectors and drive exponential growth.

Thailand’s Prime Minister, Srettha Thavisin, is naturally ecstatic about Microsoft’s entry into the country, stating that the partnership with Microsoft is a significant milestone that will further move the Ignite Thailand initiative to greater heights.

“Today’s announcement with Microsoft is a significant milestone in the journey of our ‘Ignite Thailand’ vision—one that promises new opportunities for growth, innovation, and prosperity for all Thais,” said Thavisin in a press release following Microsoft’s announcement.

Nadella Plays Santa to Indonesia, Malaysia with Nearly USD $3 Billion Pledge

Microsoft’s expansion in Southeast Asia is not limited to Thailand. Just a day before announcing the company’s data centre plans in Thailand, Nadella had already announced a planned USD $1.7 billion investment in Indonesia, this time to build new cloud and Artificial Intelligence (AI) infrastructure over the next four years and provide the necessary digital upskilling.

“This new generation of AI is reshaping how people live and work everywhere, including in Indonesia,” Nadella said in a statement announcing Microsoft’s plans to invest in the world’s largest archipelago. “The investments we are announcing today—spanning digital infrastructure, skilling, and support for developers—will help Indonesia thrive in this new era,” said Nadella, who had recently embarked on a much-publicised visit to three of the region’s growing digital hubs.

The final leg of Nadella’s Southeast Asian tour was Malaysia, where he received what amounts to the Rockstar treatment, meeting with Malaysian Prime Minister Datuk Seri Anwar Ibrahim and a cadre of ministers and high-ranking government officials. And he did not disappoint, gifting the country a USD $2.2 billion investment to advance its cloud and AI infrastructure and fortify Malaysia’s standing as a burgeoning leader in global tech.

Additionally, Microsoft is also planning to provide AI skilling opportunities to some 2.5 million residents in Southeast Asia as the region looks to keep pace with the continuing AI and data boom. Central to this skilling plan is for Microsoft to partner with governments, organisations, and communities in the different member-states of the Association of Southeast Asian Nations.

The tech giant’s recent announcements underscore the company’s commitment to Southeast Asia and its growing belief in the region’s potential for digital growth. By investing in AI and data centres in the region, Microsoft is positioning itself to be at the forefront of digital transformation in Southeast Asia, making it both a driver of economic and technological development in the region and a potential beneficiary of it.