Cisco faces fallout from a massive data leak exposing critical files, while China accuses the U.S. of cyber espionage amid rising tech tensions. AI governance sparks debate as Europe enforces strict rules, and ASIC sues HSBC for $23M scam failures. Global cyber affairs take center stage this week.
ASIC is suing HSBC Australia over $23M in scam losses, alleging systemic failures in fraud detection and delays in resolving complaints. Meanwhile, Singapore's proposed anti-scam law aims to freeze accounts of scam victims to prevent further losses, sparking debate on privacy and autonomy.
Broadcom joins Nvidia in the $1 trillion club, reshaping the AI chip race with a 51% revenue surge in Q4 2024 and VMware's $69B acquisition. As China invests $25B to boost semiconductor self-reliance, U.S.-China tensions escalate, redefining global innovation and geopolitical power dynamics.
Google is investing $1 billion in Thailand to expand AI and cloud infrastructure, while Meta is setting up manufacturing for its Quest 3S in Vietnam. Both moves position Southeast Asia as a key player in the global AI arms race, with tech giants racing to dominate the region’s digital economy.
Welcome back to the Markets And Money Series, where we dive into the billion-dollar investments shaping Southeast Asia’s digital future. This week, we focus on the technological arms race unfolding across Vietnam and Thailand, as global powerhouses like Starlink, Google, Microsoft, and Meta pour resources into revolutionizing AI, wearable consumer goods, and cutting-edge communication systems. Backed by massive investments in data centers and digital infrastructure, these tech giants are positioning the region at the forefront of the AI revolution, accelerating economic growth and preparing for the next wave of technological innovation.
Google is making a significant strategic investment in Southeast Asia, committing $1 billion to accelerate Thailand’s digital economy and expand AI infrastructure across the region. This investment marks a pivotal moment in the global AI arms race as tech giants, including Google, Microsoft, and OpenAI, compete to dominate the next wave of digital transformation. With Thailand and Vietnam at the forefront of this regional development, Google’s expansion is set to drive economic acceleration through advanced cloud services, AI adoption, and modern digital infrastructure.
In Thailand, Google’s investment focuses on creating its first data center in the country, located in Chonburi, and establishing a new cloud region in Bangkok. These facilities will support the growing demand for AI-powered innovations, such as Google Search, Maps, and Workspace, while also fueling the development of Thailand’s broader digital ecosystem. As Southeast Asia’s second-largest digital economy, Thailand is expected to reach $50 billion by 2025, with Google’s contribution playing a crucial role in unlocking new opportunities for businesses and individuals alike.
This investment is not just about infrastructure—it’s about preparing Thailand and Vietnam to be AI-ready. Google’s focus is on enabling these nations to become key players in the global digital economy, providing them with the tools and knowledge to compete in an AI-driven world. Jackie Wang, Google’s Thailand country lead, emphasized that this initiative will help “educate and upskill Thais” to harness the potential of AI as it transforms industries and reshapes economic landscapes. Google’s efforts are set to bridge the gap between traditional industries and future-ready technologies, positioning Thailand and Vietnam as leaders in Southeast Asia’s AI revolution.
Vietnam, too, is part of Google’s vision for the region. Reports indicate that Google is considering a large-scale data center near Ho Chi Minh City, which would mark the first major investment by a U.S. tech giant in Vietnam’s growing tech scene. Despite Vietnam’s past struggles to attract large-scale foreign investment due to its inconsistent infrastructure, this potential investment signals a turning point. If realized, Google’s data center in Vietnam could be operational by 2027, helping the country emerge as a regional hub for AI and cloud services. This would further solidify Google’s commitment to building a network of hyperscale data centers that will drive digital transformation across Southeast Asia.
The broader context of these investments lies in the global AI arms race, where the competition between Western tech giants and China is intensifying. As companies like Google lay the groundwork for AI and cloud dominance, they are simultaneously advancing the economic goals of countries like Thailand and Vietnam. By investing in critical infrastructure, including subsea cables across the Southern Pacific, Google is not only enhancing connectivity between Asia and the rest of the world but also positioning itself as a key player in the region’s future digital economy. These cables are vital for supporting the increased traffic that AI and cloud computing will generate, ensuring that Southeast Asia is well-integrated into global digital flows.
Vietnam is fast becoming a frontrunner for international tech investment with titans such as Meta, Google and SpaceX trying to gain tactical advantage there. They’re propelling Vietnam’s rise into a new wave of AI-driven consumer goods, data centres and satellite services, making Vietnam an influential tech powerhouse in the world.
Mark Zuckerberg’s company Meta has done great work to diversify the supply chain and outsource more of its manufacturing from China, putting its new manufacturing site in Southeast Asia. It recently announced plans to make its next-generation virtual and augmented reality headsets, Quest 3S, in Vietnam. This would add more than 1,000 new jobs and significantly boost the country’s capacity to manufacture AI-driven technologies. Meta’s choice shows the ever-growing demand for Vietnam’s technology industry and the role that Vietnam plays in Meta’s new hardware plan.
Vietnam has become a crucial market for Facebook, where the platform is used by 75 million people, making it the company's seventh-largest market globally. Facebook has been under pressure to play by the strict rules of the local government despite the popular platform. Meta’s president of global affairs Nick Clegg, spoke at a recent tech conference in Hanoi about the company’s determination to build in the area.
“We will, with our local partners, be manufacturing them here in Vietnam, and we estimate that this will create well over 1,000 new jobs,”
Clegg said, outlining the company’s plans for the Quest 3S production. Meta's growing investment in Vietnam was further solidified with meetings between Clegg and Vietnamese leaders, including Prime Minister Pham Minh Chinh and Communist Party chief To Lam.
Google is also moving to capitalise on Vietnam’s burgeoning tech landscape. The company is considering building a large hyperscale data centre near Ho Chi Minh City, a critical economic hub. If realised, this would be Google’s first major investment in Vietnam and would represent a significant expansion of its AI and cloud services infrastructure in Southeast Asia. This investment would play a crucial role in meeting the region’s growing demand for data processing and AI-powered applications.
Elon Musk’s SpaceX is also making waves in Vietnam, with plans to invest $1.5 billion to launch its Starlink satellite services. This initiative aims to bolster Vietnam’s internet infrastructure, especially in remote and mountainous regions where connectivity has traditionally been unreliable. With Starlink’s satellite network, Vietnam will see improved internet speeds and broader access to AI-driven innovations, laying the foundation for the future digital economy in previously underserved areas.
The collective investments from Meta, Google, and SpaceX highlight Vietnam’s increasing prominence in the global tech race. The country’s ability to support hyperscale data centres, manufacture AI-powered consumer products, and expand its internet infrastructure positions it as a critical player in the rapidly evolving digital and AI technology sectors.
As these tech titans continue to channel resources into Vietnam, the nation stands to gain significantly in terms of infrastructure development, job creation, and expanded manufacturing capabilities. The rise of AI-powered wearable devices, virtual reality products, and large-scale data centres will transform Vietnam into a central hub for global tech innovation.
The future of Southeast Asia’s tech sector is extremely bright, especially for low-cost and high-volume production in the next 10 years. The fact that Vietnam has proved able to increase production levels to service global demands also makes it the ideal destination for developing AI-driven machines. The rise of the tech titans Meta, Google and SpaceX has set Vietnam on the path to become a world leader in AI-powered innovation and global tech ecosystem.
Broadcom joins Nvidia in the $1 trillion club, reshaping the AI chip race with a 51% revenue surge in Q4 2024 and VMware's $69B acquisition. As China invests $25B to boost semiconductor self-reliance, U.S.-China tensions escalate, redefining global innovation and geopolitical power dynamics.
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Australia pushes tech giants to pay for local journalism with new laws as Meta faces a global outage, raising concerns over platform reliability. Meanwhile, Meta joins hyperscalers like Google and Amazon, exploring nuclear energy to power AI ambitions and unveils a $10B AI supercluster project.
Australia's government plans to make tech giants pay for local journalism, leveling the media playing field. Meanwhile, Meta faces global outages, sparking reliability concerns, and unveils nuclear ambitions with a $10B AI supercluster in Louisiana. Big tech is reshaping energy and media landscapes.
