Google Cloud unveils major infrastructure investments in Southeast Asia
Google has announced a $1 billion investment in building a data center in Thailand to help meet the growing demand for cloud storage and AI toolloads in Southeast Asia (SEA).
The news, per Reuterscoming hot on the heels of Google Cloud announces a multi-year agreement to provide sovereign cloud services to Malaysia this week, as well as a $2 billion investment in building a data center as a first step in SEA back in May 2024.
The Thai data center will be located in Chonburi, while the cloud region (i.e. the infrastructure dedicated to providing services to companies and organizations) will be located in Bangkok.
Southeast Asia and cloud expansion
“Google’s cloud and data center infrastructure in Bangkok and Chonburi will help meet growing demand for Google Cloud capabilities and AI innovations, as well as the company’s popular digital services – such as Search, Maps and Google Workspace,” Google said in a statement. A study by Deloitte shows that 14,000 jobs would be created by the investment over the next five years.
Meanwhile, in Malaysia, Google Cloud is working with local tech company DAgang NeXchange Berhad (DNeX) to meet growing cloud demand while operating within the country’s strict data protection laws regarding residency and privacy.
To this end, DNeX will use Google Distributed Cloud to provide ‘air-gapped’ services (which do not need to connect to a Google cloud region) to Malaysian customers.
It’s unclear whether this is just a temporary fix while Google’s construction project gets underway, and in a joint statement, neither company provided a timeline or valuation for the deal.
Karan Bajwa, vice president of Google Cloud Asia Pacific, said: “Google Cloud and DNeX will provide organizations with the state-of-the-art distributed cloud infrastructure, developer tools and AI services they need to drive digital transformation on their own terms.”
Both companies confirmed that they are considering opening a facility for training local talent in AI skills.
Google is not the only technology giant eyeing SEA as a growth market for the cloud. Microsoft has also announced similar plans to open a Thailand-based data center. May 2024citing concerns about demand and availability, in addition to boosting economic growth.
