BANGKOK, THAILAND – 2024/05/01: Satya Nadella, Executive Chairman and CEO of Microsoft Corporation speaks during the “Microsoft Build: AI Day” event at the Queen Sirikit National Convention Center. Satya Nadella announced that Microsoft Corporation plans to invest in its first data center, the Cloud First platform, in Thailand. (Photo by Peerapon Boonyakiat/SOPA Images/LightRocket via Getty Images)

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Microsoft Chairman and CEO Satya Nadella on Wednesday announced “significant commitments” to build a new regional data center in Thailand, among other initiatives, as the US tech giant doubles its operations in Southeast Asia.

The firm said it would also commit to training more than 100,000 people in AI skills and support local developers, but did not disclose the amount of the investment.

A day earlier, Nadella said the firm would invest $1.7 billion in Indonesia over the next four years to build new cloud and AI infrastructure.

“Thailand has an incredible opportunity to build a digital future powered by AI,” Nadella said in statement on Wednesday, adding that the investment will help drive impact and growth in Thailand’s public and private sectors.

Microsoft said there is growing demand for cloud computing services in Thailand from its companies and the commitments will allow the country to take advantage of the economic and productivity opportunities arising from AI.

“Today’s announcement with Microsoft is an important milestone in the journey of our ‘Ignite Thailand’ vision — one that promises new opportunities for growth, innovation and prosperity for all Thais,” Thai Prime Minister Sreeta Thawisin said in the press release.

Microsoft is expanding its presence in Southeast Asia, announcing plans for new regional data centers in Malaysia and Indonesia in 2021. It currently houses its Southeast Asia data center in Singapore.

The AI ​​boom has boosted demand for cloud computing services and data centers, as large amounts of data are needed to train AI models, and the cloud provides access to huge data sets. Data centers are facilities where data is stored.

Microsoft on Tuesday also unveiled wider plans to provide AI skills opportunities to 2.5 million people across the Association of Southeast Asian Nations, whose members include Thailand and Indonesia, by 2025.