The news comes a day after Chief Executive Satya Nadella announced investments worth $1.7 billion investments in artificial intelligence (AI) and cloud facilities in neighbouring Indonesia.
"The datacenter region will expand the availability of Microsoft’s hyperscale cloud services," the company said in a statement.
"What that means it that is not only do you have full capability of Azure in Thailand, but the best world-class AI infrastructure," Nadella said at an event in Bangkok, the capital, referring to the company's cloud computing platform.
The Thailand data centre will also help enterprise-grade reliability, performance, and compliance with data residency and privacy standards, Microsoft added in the statement.
The data centre was in line with Thailand's aim to become a digital economy hub, Prime Minister Srettha Thaivisin said.
"Microsoft's investment is an important turning point in the development of Thailand's digital economy, increasing competitiveness," Srettha posted on social media, adding that it would fuel economic growth.
Microsoft has pledged to train 2.5 million people in Southeast Asia in the use of AI by 2025.
