Google announced on Monday that it will invest 36 billion Thai baht (approximately $1 billion) to establish a new data center in Thailand and enhance the country’s cloud infrastructure. This move marks a significant step in Google’s efforts to strengthen its presence in Asia, particularly in artificial intelligence (AI) as it faces increasing competition from rivals like Microsoft and OpenAI.

The new data center, to be located in Chonburi, eastern Thailand, will be Google’s first in the country. It is expected to address the growing demand for Google Cloud services and AI innovations, as well as support popular platforms such as Google Search, Maps, and Workspace.

In an official blog post, Jackie Wang, Google’s country lead for Thailand, emphasized that the investment will not only bolster infrastructure but also create new opportunities for Thai businesses, educators, and citizens. “As AI transforms industries, it is more important than ever to educate and upskill Thais to use this technology,” she stated.

Thailand boasts the second-largest digital economy in Southeast Asia and is projected to reach $50 billion by 2025, according to a 2023 report by Google, Temasek, and Bain & Company. This makes Thailand a key market for Google’s ongoing expansion, especially in AI and cloud computing.

Although Google remains a leader in global search engine technology, it faces rising competition from generative AI tools, such as OpenAI’s ChatGPT. These AI-driven platforms, built on transformer models initially developed by Google, are transforming the tech landscape and prompting the company to increase its investment in AI.

In addition to focusing on AI innovation, Google is dealing with legal challenges, including a recent antitrust lawsuit filed against Microsoft, which accuses the tech giant of using its dominance in the cloud computing sector to suppress competition.

Through its $1 billion investment in Thailand, Google aims to solidify its position in Asia’s rapidly growing digital economy while continuing to lead in AI and cloud services.