Amazon Web Services (AWS) plans to invest A$20 billion (about US$13 billion) over the next five years to expand its cloud computing and AI infrastructure in Australia. This marks AWS’s largest technology investment in the country, aiming to enhance regional capabilities to meet global demand for advanced computing.
The investment, from 2025 to 2029, will support the expansion, operation, and maintenance of AWS’s Australian data center infrastructure, focusing on generative AI workloads and increased server capacity. AWS states this will boost Australia’s AI capabilities, economic growth, technology innovation, and job creation.
Australian Prime Minister Anthony Albanese praised the initiative as a significant vote of confidence in the economy and a step toward digital competitiveness.
AWS will support this expansion with renewable energy commitments, including three new solar farms in Victoria and Queensland, sourcing over 170 megawatts of renewable energy. AWS has already surpassed its 2023 goal of 100% renewable energy usage and is the world’s largest corporate buyer of renewable energy.
The new infrastructure builds on AWS’s Australian presence, which began in 2012 in Sydney and expanded to Melbourne in 2023. AWS has invested over A$9.1 billion in Australia, significantly contributing to the local cloud ecosystem and job creation.
The Australian Department of Industry, Science and Resources projects that AI and automation could add up to A$600 billion annually to the GDP by 2030. AWS’s expansion aligns with this, positioning it as a key player in Australia’s digital transformation amid competition from Google Cloud and Microsoft Azure in the Asia-Pacific region.
AWS highlighted the environmental benefits of its cloud model, noting that migrating AI workloads to AWS could reduce carbon emissions by up to 94% compared to traditional data centers. AWS’s strategy to grow AI infrastructure with sustainable energy addresses environmental concerns related to energy-intensive technologies.
Once operational, the three new solar projects will join AWS’s existing renewable energy assets in Australia, totaling eight projects. They are expected to generate about 1.4 million megawatt hours of clean electricity annually, enough to power nearly 290,000 Australian homes.
This investment solidifies Australia’s role as a strategic hub for cloud computing and AI innovation, reaffirming AWS’s commitment to environmentally responsible growth.
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