Microsoft chairman and CEO Satya Nadella recently announced plans to build a new regional data center in Thailand, along with other initiatives, to reinforce the U.S. tech giant’s presence in Southeast Asia. This investment signifies Microsoft’s commitment to the region’s growing digital economy.

The firm also pledged to provide AI skills training for more than 100,000 individuals and offer support to local developers. While the exact investment amount was not disclosed, the company aims to foster a digital-first, AI-powered future in Thailand to drive economic growth and innovation.

Thailand’s Prime Minister, Srettha Thavisin, expressed optimism about the collaboration, stating that the partnership with Microsoft signifies a significant step towards achieving the country’s ‘Ignite Thailand’ vision.

As part of its expansion strategy, Microsoft has been ramping up its presence in Southeast Asia, with plans for new data centers in various countries. In 2021, the tech giant announced similar projects in Malaysia and Indonesia, in addition to its existing data center in Singapore.

The surge in demand for cloud computing services, driven by the AI boom, has underscored the importance of data centers. These facilities play a crucial role in storing and managing the vast amounts of data required for AI model training.

Microsoft’s commitment extends beyond Thailand, with the company aiming to provide AI skilling opportunities to 2.5 million individuals across the Association of Southeast Asian Nations (ASEAN) region by 2025. This initiative reflects Microsoft’s broader goal of fostering digital skills in the region.