Amazon Web Services (AWS) has unveiled an ambitious plan to invest A$20 billion (approximately US$13 billion) in Australia over the next five years. This significant investment aims to expand the company’s cloud computing and artificial intelligence (AI) infrastructure in the region. It represents AWS’s largest technology investment in Australia to date and is part of a broader strategy to enhance regional capabilities to meet the increasing global demand for advanced computing solutions.
The investment will span from 2025 to 2029 and will focus on enhancing AWS’s existing data center infrastructure in Australia, with a particular emphasis on supporting generative AI workloads and increasing server capacity. This expansion is expected to bolster Australia’s AI capabilities while also contributing to technological innovation and job creation in the local economy.
Australian Prime Minister Anthony Albanese has publicly praised the investment, describing it as a “huge vote of confidence” in the country’s economy and a vital step toward future-proofing its digital competitiveness.
In addition to expanding its infrastructure, AWS has committed to sustainability by planning to develop three new solar farms in Victoria and Queensland. These projects will contribute over 170 megawatts of renewable energy capacity, aligning with AWS’s goal of achieving fully carbon-neutral operations. The company has already surpassed its 2023 target for 100% renewable energy usage and remains the largest corporate purchaser of renewable energy globally.
AWS’s existing presence in Australia began in 2012 with the launch of its first region in Sydney, later expanding to Melbourne in 2023. To date, AWS has invested over A$9.1 billion in the country and has played a pivotal role in the growth of the local cloud ecosystem, creating tens of thousands of direct and indirect jobs, particularly in cloud-based IT services and data center operations.
The expansion comes amid projections by the Australian Department of Industry, Science and Resources, which estimate that AI and automation could add up to A$600 billion annually to the nation’s GDP by 2030. This investment positions AWS as a crucial player in Australia’s digital transformation efforts, especially as competition intensifies from other major cloud providers like Google Cloud and Microsoft Azure in the Asia-Pacific region.
Furthermore, AWS has highlighted the environmental advantages of its cloud model. A recent study conducted with Accenture indicated that companies migrating their AI workloads to AWS could reduce carbon emissions by up to 94% compared to traditional on-premises data centers. By pairing its AI infrastructure growth with renewable energy sourcing, AWS addresses growing concerns about the environmental impact of energy-intensive technologies, including generative AI.
Once operational, the new solar projects will join AWS’s existing renewable energy assets in Australia, enhancing the company’s total to eight projects that are expected to generate around 1.4 million megawatt hours of clean electricity annually—enough to power nearly 290,000 Australian homes.
With this investment, AWS not only reinforces Australia’s position as a strategic regional hub for cloud computing and AI innovation but also reiterates its commitment to environmentally responsible growth.
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