Jakarta, INTI - TikTok, the world most popular short video platform with 1.5 billion global users, is making a significant move to expand its digital infrastructure.
According to Evrimagaci.org on Friday, January 31, 2025, TikTok plans to invest 126.8 billion baht (equivalent to $3.76 billion) to build a data center in Thailand, as announced by the country's investment authority.
The Thailand Board of Investment (BOI) revealed that the ByteDance-owned platform will use the facility to provide data hosting services for its affiliated companies.
The decision follows reports in October 2023 that ByteDance was considering Thailand as a strategic location to strengthen its cloud and artificial intelligence (AI) services.
The company has previously invested heavily in AI development across the region, including the establishment of AI centers. Currently, Bridge Data Centres, which operates several facilities in Thailand, has collaborated with ByteDance, further solidifying the country’s position as a growing hub for digital infrastructure.
With operations expected to commence in 2026, TikTok’s data center will reinforce its role as a key player in Thailand’s digital market. This move aligns with the company’s long-term strategy to expand its presence in the Asia-Pacific region and drive technological innovation in the area.
Why Thailand?
As reported by Evrimagaci.org, industry experts stated that TikTok's substantial investment not only reflects confidence in Thailand’s growing status as a technology hub but also underscores its commitment to remaining relevant amid increasing regulatory scrutiny, particularly from countries like the United States.
Concerns over data privacy and security have prompted TikTok to align its operations with local regulations, as seen in its response to the U.S. government’s regulatory considerations.
This strategic move is part of a $5 billion investment initiative approved by Thailand’s Board of Investment (BOI), highlighting the intensifying competition among global tech companies as they strive to strengthen their positions in Southeast Asia’s innovative digital market.
Thailand’s Digital Ambitions
Thailand has welcomed this development, as its maturing digital infrastructure positions it as a key player in the ASEAN community.
The presence of TikTok and other tech giants like Siam AI highlights the country’s potential for data innovation and aligns with its vision to accelerate digital economic transformation.
TikTok’s Strategic Positioning
As TikTok prepares to implement this massive investment, the move reinforces its strategy to navigate the digital ecosystem across Southeast Asia. With a global user base exceeding one billion, TikTok must adapt to regulatory pressures and fierce competition from other tech giants, all vying for dominance in this strategically significant region.
This investment not only strengthens TikTok’s technological capabilities but also demonstrates its commitment to fostering innovation and aligning with local regulations, ensuring its relevance in an increasingly competitive and scrutinized digital landscape.