Amazon’s investment in Australia will be directed towards the development of cloud technologies
Tech giant Amazon is expanding its investment in Australia. The corporation plans to allocate US$13 billion to develop local data centers by 2029. This partnership will strengthen Australia’s position as a promising market for artificial intelligence technology development.
This investment is the largest that the IT corporation has made in Australia’s AI and cloud computing sector. This indicates the local market’s high potential for expanding Amazon’s capabilities. Since 2017, Jeff Bezos’s empire has been actively implementing AWS services. During this time, the company has helped 400,000 Australians improve their digital skills. Recently, Amazon has increased its focus on generative AI. This commitment is evident through the implementation of the AWS AI Spring Australia initiative and the AWS Generative AI Accelerator program.
Investments include
The announced investments include:
– operation and maintenance of data centres;
– expansion of infrastructure for facilities;
– acceleration of the implementation of artificial intelligence-based solutions;
– meeting the demand for cloud technologies from Australian customers;
– modernisation of the approaches of the country’s technical companies and training of their employees.
The corporation is interested in training new personnel to participate in its innovative projects.
The significance of the investment for the country
The Australian government wants to strengthen its partnership with Amazon. The corporation’s investments are strategically important to the country’s economy and align with the government’s strategy. This strategy consists of supporting the innovation sector as a key driver of the modern market. Funding from the American giant will help scale up the implementation of AI and cloud solutions. In return, the government promises to simplify regulatory processes and guarantee transparent regulation. According to government forecasts, the AI and automation sector will provide a stable foundation for the economy. Together, these sectors are expected to contribute approximately 600 billion local dollars to the budget annually until 2030.
Australian government partnership with AWS
In 2024, the Australian government partnered with AWS to provide cloud services. The project aimed to support security and defense needs and enhance the state’s intelligence capabilities.
In addition to supporting and expanding data center operations, new investments will go toward infrastructure. As part of this initiative, Amazon plans to fund the construction of three solar power plants in Victoria and Queensland. The plants will supply more than 170 MW of energy to the data centers. Moreover, the American corporation is investing in eight solar and wind energy facilities. These facilities will support the operation of existing AWS capacities. Once operational, the eleven projects will have a total generation capacity of around 1.4 million megawatt hours. This amount of electricity could power approximately 290,000 homes annually.
