TikTok is investing 127 billion baht ($3.8 billion) in Thailand for a data hosting service and is expected to start operations in 2026, according to the Board of Investment’s announcement on Wednesday.
The new data center aims to bolster the operations of enterprises linked to the widely-used video platform, which has also ventured successfully into e-commerce.
This investment is being carried out by TikTok’s parent company ByteDance, based in Singapore. It forms part of $5 billion in new projects that were approved on Wednesday.
This initiative represents one of several data centers that international tech giants are planning in Thailand. Last year, Google announced a $1 billion investment in a data facility in Chon Buri, following Amazon Web Services’ declaration of a $5 billion investment in Thailand, spread over 15 years.
Additionally, Microsoft has revealed plans to establish its first regional data center in the country.
According to BoI Secretary-General Narit Therdsteerasukdi, TikTok’s initiative signifies a major advancement in enhancing Thailand’s digital and AI infrastructure, pushing the nation toward becoming a regional hub.
The board also greenlit a 3.25-billion-baht venture by Siam AI Corporation, a Thai cloud partner of US chipmaker Nvidia, to develop services centered on artificial intelligence applications.
TikTok’s investment in Thailand occurs as uncertainty looms over its U.S. operations, with a 75-day grace period issued by President Donald Trump to secure a local buyer ticking away.
Thailand is positioned as “the next frontier” in the global data center expansion, according to Macquarie Equity Research, with the country’s abundant power supply and stable grid being significant attractions.
However, Macquarie analysts highlighted last month that a shortage of skilled labor could pose a challenge.
This investment by TikTok boosts the government of Prime Minister Paetongtarn Shinawatra, which has been offering new incentives to lure international corporations aiming to mitigate impacts from the intensifying US-China trade conflict under the Trump administration.
In 2024, investment commitments in Thailand jumped 35% to 1.14 trillion baht from the previous year, marking the highest since 2014. The government is aiming for investment proposals totaling at least 1 trillion baht this year.
