TikTok to Invest $3.7 Billion in Thailand Data Center

TikTok is set to invest $3.7 billion in a new data center project in Thailand. The project will host data for affiliate companies, according to the country's Board of Investment (BOI).

The investment comes as the video-sharing platform seeks to expand its global presence and capitalize on the growing demand for data center services. The project is expected to be operational as early as next year.

"TikTok's investment marks a significant step in enhancing Thailand's digital and AI infrastructure and supporting the national goal of becoming a digital innovation hub in ASEAN," said Narit Therdsteerasukdi, BOI secretary-general, as reported by Nikkei Asia.

While specific details of the project remain undisclosed, the Eastern Economic Corridor, a special economic zone in Thailand, is considered a potential location for the data center's construction.

The investment aligns with a broader trend of increased investment in data centers within Thailand and the ASEAN region. Google is currently constructing a $1 billion data center in the country, while Microsoft and Alibaba Group Holdings are also pursuing data center projects. Furthermore, the United Arab Emirates-based Damac Group is exploring an investment of up to $3 billion in data centers across Thailand and Southeast Asia.

The Thai government is actively promoting the development of renewable energy sources, making the potential for "green data centers" with low environmental impact an attractive prospect for investors. This emphasis on sustainability is likely to further incentivize investment in the country's data center sector.