TikTok Invests $3.8 billion in Thailand Data Center—Is Indonesia Next?
Meta Description: TikTok is investing IDR 61.5 trillion in a new data center in Thailand, signaling ASEAN expansion. Will Indonesia be its next destination?
Meta Keywords: TikTok data center, Thailand investment, ASEAN digital hub, Indonesia tech policy, BOI Thailand, tech infrastructure, cloud computing, digital economy
BANGKOK, investortrust.id – Thailand’s Board of Investment (BOI) has approved a proposal by Chinese tech giant TikTok to build a data center worth $3.76 billion. The investment, made through TikTok’s Singapore-based unit, is expected to begin operations in 2026.
According to a Reuters report on Thursday, Jan. 30, 2025, Thailand has emerged as a key destination for major tech companies establishing data centers. Analysts attribute this trend to the country’s reliable electricity supply and stable power grid, which offer an advantage over its regional neighbors.
This follows a series of high-profile data center investments in Thailand. In 2023, Amazon Web Services (AWS) announced a $5 billion (approximately Rp 80.85 trillion) investment spread over 15 years. Last year, Google committed US$1 billion to build a data center in Chon Buri province. Similarly, Microsoft announced its first regional data center in Thailand, reinforcing the country’s status as an emerging tech hub.
Although TikTok has yet to confirm the development, BOI Secretary General Narit Therdsteerasukdi emphasized that the investment represents a significant step in Thailand’s ambition to become a regional digital and AI hub. “This investment brings Thailand closer to its goal of becoming a leader in digital innovation,” Narit stated.
Will Indonesia Be Next?
Currently, TikTok does not have a data center in Indonesia. However, Indonesia’s Ministry of Communication and Digital (Kemenkomdigi) is reviewing regulations that could require TikTok to establish local data storage facilities. At present, TikTok’s data operations for the region are handled through centers in Singapore and Malaysia.
Despite the lack of a dedicated data center, TikTok has invested Rp 197.27 billion ($12.8 million) in Indonesia to support the digitalization of 120,000 micro, small, and medium enterprises (MSMEs). This initiative includes cash grants, digital skills training, and advertising credits, benefiting small businesses, particularly in rural and suburban areas.
With growing regulatory scrutiny and Indonesia’s position as one of TikTok’s largest markets, industry observers speculate that the next major data center investment could be in Indonesia. However, regulatory certainty and infrastructure readiness will likely play a key role in shaping TikTok’s decision.