When it comes to investment, Thailand isn’t ambivalent about TikTok. The social media platform announced that it will devote $8.8 billion to data center hosting services in Thailand over the next five years as global tech firms continue to invest in the Kingdom’s digital transition.

The investment “is a step towards more localized and efficient operations which will enable us to serve our users and customers in Thailand and Southeast Asia more effectively,” ByteDance Ltd., TikTok’s parent company, said in a statement. “This development will also strengthen Thailand’s digital competitiveness and its goal of becoming a leading tech hub in Southeast Asia.”

While the company did not provide details on exactly how its funds would be deployed, the company’s most valuable service is putting the infrastructure in place to support domestic users, including some 50 million on TikTok in Thailand, according to Helena Lersch, ByteDance’s Vice President of Public Policy.

Thailand also has over 3 million merchants using the platform for business, making it one of TikTok’s most important markets in Southeast Asia.

Prime Minister Paetongtarn Shinawatra welcomed the investment with a post on X. She said that TikTok which will help develop Thailand’s artificial intelligence, content creation and human resource skills.

During the past two years, global tech firms have been lining up to invest in data centers and other digital businesses in Thailand. Some of the firms who have committed to the Kingdom include Microsoft, Apple, Alphabet, and Amazon.

The government has been actively courting investment from businesses in digital and other advanced industries and offers generous incentives for firms that invest in those sectors in Thailand.

The investments are needed to support and accelerate Thailand’s transition to a more digitally driven economy and society.