The 10 members of the Association of Southeast Asian Nations (ASEAN) together constitute the fastest-growing online market in the world, with 125,000 new internet users daily. U.S. tech giants are keenly aware of Southeast Asia’s strategic importance and are strengthening their regional presence with huge investment pledges from Apple, Microsoft, and Amazon in recent weeks. 

In mid-April, Apple CEO Tim Cook made a multi-country trip to Vietnam, Indonesia, and Singapore. He announced a $250 million planned expansion of the company’s Singapore campus, reportedly to focus on AI. Cook also said Apple intends to increase its investments in Vietnam and explore manufacturing opportunities in Indonesia.

Not longer after, Microsoft CEO Satya Nadella visited Indonesia, Malaysia, and Thailand from April 30 to May 2. On his first stop in Jakarta, he announced plans to invest $1.7 billion over four years in cloud and AI architecture in Indonesia, the largest investment in the company’s 29-year presence in the country. The next day, he declared that Microsoft will open its first data center in Thailand, building upon an agreement with the Thai government to deliver cloud and AI infrastructure. 

Nadella then visited Malaysia, where he announced plans to invest $2.2 billion in cloud computing and artificial intelligence infrastructure over the next four years. Microsoft will work with the Malaysian government to boost its cybersecurity capabilities and provide AI training to 200,000 people in the country. Nadella also said Microsoft is committed to providing AI skills training to 2.5 million people across the region, particularly in Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.

Finally on May 7, Amazon Web Services (AWS) committed $9 billion to expand its cloud infrastructure in Singapore. The investments will go toward the construction, operation, and maintenance of data centers in the city-state over the next five years. Like Microsoft, AWS is partnering with the Singaporean government to create a program for 5,000 people annually to expand research and development capabilities.

U.S. tech companies are placing big bets on the future digital economies of Southeast Asia. In so doing, they will boost regional economies and their own bottom lines. They will also look to shape rules on data governance and AI as regional governments grapple with the digital future, including the competing visions advocated by China, Europe, and the United States. 

Gregory B. Poling is a senior fellow and director for the Southeast Asia Program and the Asia Maritime Transparency Initiative at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Japhet Quitzon is a research associate with the Southeast Asia Program at CSIS.

For more political, economic, and security analysis on the region, check out our blog series, The Latest on Southeast Asia. To hear the latest news on the region and hear from Southeast Asia experts, listen and subscribe to the Southeast Asia Radio podcast on any streaming platform.