TikTok plans to invest 127 billion baht ($3.8 billion) in Thailand to establish a data hosting service, as announced by the Board of Investment (BoI) on Wednesday.
The new data center aims to support the operations of companies associated with the immensely popular video platform, which has also successfully ventured into e-commerce. The center’s operations are expected to commence in 2026, according to the BoI.
This investment will be made by TikTok’s Singapore branch, part of its China-based parent company, ByteDance. The announcement was part of a broader $5 billion in new projects approved by the board on the same day.
TikTok did not respond immediately to a Reuters inquiry for confirmation.
This initiative is one of several data centers being developed by major tech companies in Thailand. Last year, Google announced a $1 billion investment in a data hub in Chon Buri, and a year earlier, Amazon Web Services revealed a $5 billion investment plan for the country over 15 years. Microsoft has also confirmed plans to open its first regional data center in Thailand.
Narit Therdsteerasukdi, secretary-general of the BoI, stated that TikTok’s plans represent a significant advancement in improving Thailand’s digital and AI infrastructure, helping the nation move closer to its ambition of becoming a regional tech hub.
Additionally, the board approved a 3.25-billion-baht project by Siam AI Corporation, a Thai cloud partner of US chipmaker Nvidia, focusing on artificial intelligence applications.
TikTok’s investment comes amid uncertainty regarding its operations in the US, particularly as a 75-day reprieve was granted by President Donald Trump to secure a domestic buyer.
According to Macquarie Equity Research, Thailand is poised to be “the next frontier” in the global data center boom, thanks to its ample power supply and high grid stability. However, a shortage of skilled labor may pose challenges, as noted by analysts in a recent report.
This investment serves as a boost for Prime Minister Paetongtarn Shinawatra’s administration, which has promised new incentives to attract global firms aiming to mitigate impacts from the escalating US-China trade conflict likely to be exacerbated during the Trump administration.
In 2024, Thailand saw a 35% increase in investment pledges, totaling 1.14 trillion baht, the highest level since 2014. The government is aiming to secure fresh proposals worth at least 1 trillion baht this year.
