This article first appeared on GuruFocus.

Microsoft (MSFT, Financials) plans to invest $1 billion in Thailand over the next two years, signaling a deeper push into Southeast Asia’s rapidly growing artificial intelligence and cloud markets.

The investment will mostly go toward constructing cloud and AI infrastructure, such data centers, but it will also help the local workers learn new digital skills. Thailand is speeding up its attempts to make its technology ecosystem stronger and draw in foreign investment in data-driven businesses.

For Microsoft, the move is part of a bigger plan to build its cloud business in areas with significant growth potential. As more people use the internet, businesses go digital, and demand for AI-powered services grows, Southeast Asia has become a more vital battleground for tech companies.

The Thai government claimed that the investment will also help the economy grow in the long run by making the workforce more skilled and giving firms access to newer technology.

Microsoft has been continuously raising its investment on worldwide infrastructure to keep up with the growing demand for AI services, especially as businesses start to use more cloud-based tools and machine learning apps.

Investors will be keeping an eye on whether Microsoft’s sustained development in overseas markets helps it keep up its cloud growth and get ahead of its competitors in new regions.

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