BOI approves TikTok's $3.76 billion data centre investment

State agency finalises incentives for the production of Sustainable Aviation Fuel

 

Thailand’s Board of Investment (BOI) has approved a significant investment by TikTok, the popular video-sharing platform, of over 126 billion baht (US$3.76 billion) in establishing a data centre in the country.

 

The investment will see TikTok, a subsidiary of ByteDance, establish server and related infrastructure in high-performance data centres located in Bangkok, Samut Prakan, and Chachoengsao provinces.

 

This approval follows a surge in digital investments in Thailand, with 2023 witnessing a significant influx of investment in data centres and cloud services from global companies, including those from the United States, China, Hong Kong, Japan, India, Australia, and Thailand. These 16 projects collectively represent over 240 billion baht in investment.
  



"This investment marks a significant step in enhancing Thailand's digital and AI infrastructure," said Narit Therdsteerasukdi, secretary-general of the BOI. "It brings us closer to our goal of becoming a regional digital hub."


 

In addition to TikTok's investment, the BOI approved two other major projects, bringing the total approved investment to 170 billion baht. These include an AI cloud service by Siam AI Corporation, the first Thai company to become an NVIDIA cloud partner, and a potassium chloride production project by Asia Pacific Potash Corporation in Udon Thani province.

 

The BOI has approved incentives for the production of Sustainable Aviation Fuel (SAF) to promote a bio-circular-green economy. Companies investing in SAF production will be eligible for corporate income tax exemptions for up to eight years.
  




Building on this momentum, the BOI has also strategically upgraded agricultural and food industrial estates or promotion zones to become "biotechnology industrial estates or promotion zones". This expansion enables the sector to encompass a broader range of industries, including agriculture, food, renewable energy, and supportive services. 

 

The move is in line with the BCG industrial promotion strategy and comes with significant benefits, including a five-year corporate income tax exemption. It also aligns with Thailand's broader strategy to attract foreign investment and position itself as a key player in the digital economy and sustainable development.

(2025/01/29-00:00)