BACK Microsoft Announces New Data Center in Thailand: What Benefits Will This Bring to Thailand?
It’s an exciting time for Thailand as Satya Nadella, Chairman and CEO of Microsoft, announced the establishment of the company’s first DATA Center in Thailand. The announcement was made in front of over 2,000 developers and business and technology leaders during the Microsoft Build AI Day event on May 1, 2024. Thailand’s exceptional potential, robust infrastructure, and opportunities to drive digital and AI innovation in Southeast Asia make it the perfect location for this pivotal step in developing Thailand’s Data Center infrastructure.
Why Microsoft Chose Thailand
Several factors contributed to Microsoft’s decision to choose Thailand as the site for its new Data Center. Besides Thailand’s technological prowess, the key reasons include:
- Advanced IT Infrastructure: Thailand has developed modern industrial estates, IT infrastructure, and fiber-optic networks capable of handling vast volumes of data.
- Strategic Location: Thailand is centrally located in Southeast Asia, making connecting Data Center services with other countries in the region easier.
- Investment Incentives: The Thai government offers investment incentives for DATA Centers and other industries, including tax benefits from the Board of Investment (BOI) and the right to own land in industrial estates.
- Low Operational Costs: Thailand offers lower operational costs than many other countries, with industrial estates aligned with environmental policies, robust utilities, skilled labor, and a workforce with the technological expertise needed for Data Center and AI operations.
The Benefits of Microsoft Choosing Thailand
Microsoft’s decision to establish a Data Center in Thailand is expected to provide a significant boost to the Thai economy. Kearney, a global consultancy, predicts that this will increase Thailand’s GDP by 117 billion USD, approximately 4.3 trillion baht. Beyond the economic impact, Thailand stands to benefit in several other ways, including:
- Strengthened Cybersecurity: Microsoft has partnered with Thailand’s National Cybersecurity Agency (NCSA) to enhance online security. The collaboration includes sharing information and guidance on technology development to improve Thailand’s cybersecurity capabilities.
- Skills Development: Microsoft is committed to enhancing the skills of Thai developers through various projects, such as the AI Odyssey initiative, which aims to upskill over 6,000 Thai developers in AI. Another program, AI Skills for the AI-enabled Tourism Industry, focuses on developing AI skills among tourism entrepreneurs and workers.
The announcement of Microsoft’s Data Center in Thailand is a significant milestone, offering multiple benefits for the country, from economic growth to increased technological capacity and AI skill development for Thai citizens. Thailand is well-prepared to welcome foreign investors, as exemplified by the 304 Industrial Park, which offers investment incentives from the BOI. The park also provides a One Stop Service with a professional team to assist investors in obtaining investment promotion benefits, land ownership rights, and factory operation permits—all at no additional cost.
Information Source
- https://www.matichon.co.th/economy/news_4553906
- https://www.thaipbs.or.th/now/content/1114
- https://www.thairath.co.th/money/economics/thailand_econ/2782642
- https://workpointtoday.com/microsoft-build-ai-day/#google_vignette
- https://www.thansettakij.com/business/economy/595013
- https://www.304industrialpark.com/th/why-304
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