Google Cloud unveils a $1 billion investment plan to build new data centers in Thailand, as Microsoft, Google and Amazon see the Southeast Asia market as a big cloud and AI opportunity.

Fresh off Microsoft unveiling plans to build new data centers in Thailand, Google Cloud has announced a $1 billion investment to build a new data center and cloud region in the country.

The cloud and artificial intelligence market is heating up in Southeast Asia as the largest cloud giants on the planet—Google, Microsoft and Amazon—are pouring billions into the region as they battle for market share in the up-and-coming sector, particularly in Thailand.

Google Cloud unveiled a $1 billion data center investment on Monday in Thailand to meet the growing demand for cloud computing in Southeast Asia while also striving to accelerating AI adoption in the region.

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“Google’s cloud and data center infrastructure in Bangkok and Chonburi will help meet growing demand for Google Cloud capabilities and AI innovations, and the company’s popular digital services—such as Search, Maps, and Google Workspace,” Google said in a statement.

Earlier this year, Google said it would invest a total of $2 billion to develop its first data center and Google Cloud region in Malaysia.

This week, Malaysian technology firm Dagang NeXchange Berhad unveiled a multi-year partnership with Google Cloud to provide sovereign cloud services in the country. This partnership is aimed at addressing demand for cloud solutions that meet strict data residency, security, and privacy requirements, particularly within regulated industries.

Microsoft’s Thailand Cloud And AI Investment

In May, Microsoft said it would open its first regional data center in Thailand with the goal of boosting its cloud services and AI availability in the region along with compliance to data residency standards.

Microsoft CEO Satya Nadella at the time said, “What this means is, not only do you have full capability of Azure in Thailand, but the best world-class AI infrastructure.”

Additionally, Microsoft this year announced a $1.7 billion investment plan in AI and cloud data centers in Indonesia.

The Redmond, Wash.-based software giant has committed to train 2.5 million people in Southeast Asia in the use of AI by 2025.

Amazon’s $5 Billion Thailand Investment

In May, Amazon announced a new AWS Asia Pacific Region in Bangkok, as part of its $5 billion investment strategy in Thailand.

Amazon expects to have the new data center up and running by early 2025.

The Seattle-based cloud company already has infrastructure in the country including 10 Amazon CloudFront edge locations, AWS Outposts availability and AWS Local Zones. AWS also plans to invest $6 billion into new Malaysian cloud regions.

AWS said it has already trained more than 50,000 individuals in Thailand with cloud skills, with plans to train 100,000 people by 2026.

‘Ignite Thailand’ Vision

The massive investments in Thailand from Amazon, Google and Microsoft come as the country pushes its ‘Ignite Thailand’ mission with the goal of boosting the country’s digital economy and technology innovation by 2030.

Thailand’s former Prime Minister Srettha Thavisin said this year that his country’s ‘Ignite Thailand’ vision, “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.”

According to market research firm Kearney, AI could contribute nearly $1 trillion to Southeast Asia’s gross domestic product by 2030, with Thailand poised to capture $117 billion of that.