Nvidia plans to collaborate with the Thai government to establish a world-class AI infrastructure, though questions remain about Thailand's ability to fully capitalize on its strengths in developing a significant presence in the AI data center ecosystem.
According to Barron's and the Bangkok Post, Nvidia CEO Jensen Huang met with Thai Prime Minister Paetongtarn Shinawatra on December 3, resulting in both parties agreeing to deepen AI cooperation.
Under the agreement, Nvidia will work with the government to develop world-class AI infrastructure and share technical talent to support Thailand's AI initiatives. The company has also agreed to support over 50 startups in Thailand and invest in university-level AI training programs.
Huang attended an event organized by Siam.AI Cloud, Nvidia's inaugural Nvidia Cloud Partner in Thailand. The company's CEO, Ratanaphon Wongnapachant, holds significant political connections as the nephew of former Prime Minister Thaksin Shinawatra and son of the current Prime Minister, Paetongtarn. Thaksin himself attended the event.
Industry analysts view Huang's visit to Thailand as a positive sign, potentially enabling the country to compete with Malaysia and Indonesia. With successful development, Thailand could attract more investments in the AI data center ecosystem, including server rack manufacturing. The partnership with Nvidia could also foster additional AI applications.
However, the Thai government faces several challenges, including import taxes, internet transmission costs, and electricity fees that could make Thailand less attractive for developing data centers.
Some industry observers argue that establishing AI data centers in Thailand might not significantly affect the local industrial ecosystem or reduce cloud service costs. While these investments could increase Thailand's GDP, they would also raise electricity consumption. Unlike Thailand's automotive industry, which has seen consistent investment, the cloud industry ecosystem remains in its early stages.
According to academic experts, Thailand can benefit from AI data centers by leveraging its Software as a Service (SaaS) strengths. However, the country currently lacks talent in the semiconductor sector, limiting its involvement to mid and downstream roles in the industry chain.
In late October, Bloomberg reported that Thailand's Commerce Minister Pichai Naripthaphan had forecasted Huang's visit to Bangkok and investment plans. However, the scale of Nvidia's announced investments falls short of those recently made by Amazon, Microsoft, and Google in Thailand.
In a recent statement, Paetongtarn highlighted Thailand's ambition to position itself as the preferred destination for data center and semiconductor investments, adding that the Thai government must prepare for potential changes brought about by Trump's administration.
