Microsoft Corp will invest in artificial intelligence infrastructure and set up its first Azure data centre in Thailand, part of a push to expand its footprint in fast-growing South-East Asia.

The OpenAI backer sees AI adding as much as US$1 trillion in value to the region, chief executive officer Satya Nadella said during a company event in Bangkok Wednesday. “Even in Thailand, double-digit growth of over US$100bil plus can be driven, because of the productivity curve that can be bent by AI,” he said.

The software maker the previous day unveiled a US$1.7bil outlay in Indonesia, to be made over four years.

Nadella’s tour of South-East Asia, which includes a meeting with Thai Prime Minister Srettha Thavisin, follows high-profile visits by Nvidia Corp’s Jensen Huang and Apple Inc’s Tim Cook to the region, where Chinese and US tech titans as well as local startups are locked in a fierce battle in pursuit of growth. Thailand’s economy has fallen behind, however, attracting less foreign direct investment than its peers as it grapples with soaring public and household debt and an ageing population.

Microsoft has been expanding its cloud and artificial intelligence offerings, capitalising on technology from OpenAI. That helped lift sales and profit above expectations in the March quarter, with Nadella last week telling analysts that Azure took market share from rivals.

 - Bloomberg