CIO Tech Outlook Team | Monday, 16 June 2025, 03:06 IST
Amazon has unveiled plans to invest A$20 billion ($12.97 billion) in Australia’s data center infrastructure from 2025 to 2029, its most significant technology investment in the country to date. Announced via a company blog post , the funds will support the expansion, operation, and maintenance of Amazon Web Services (AWS) data centers, strengthening Australia’s cloud computing and AI capabilities.
The investment will be prioritized towards catering to the increasing need of server capacities so as to handle the Generative AI workloads, which has seen most tech giants in the world such as Amazon, Microsoft and Google to advance their dominance in the AI and the cloud industries.
Amazon is also advancing its sustainability goals, securing over 170 megawatts of renewable energy from three new solar farms in Queensland and Victoria. This supports the company’s commitment to power all operations, including data centers, with renewable energy by 2025.
Australian Prime Minister Anthony Albanese praised the investment as a major economic driver. “Amazon Web Services’ $20 billion investment in data centers in Australia will set us up for the future, boosting our economy and productivity,” Albanese said in a post on social media platform X. “This is a huge vote of confidence in the Australian economy.”
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The company has provided AWS in Australia since starting its Sydney region in 2012, and a region in Melbourne in January 2023, building upon an existing Amazon operations established in the country. The current investment was a previous achievement of 9.1 billion and the new $11 billion in Sydney and 2.2 billion in Melbourne is expected to contribute 35 billion of GDP to Australia by 2027 and produce approximately 11,000 jobs of which 2500 roles will be direct to work on the construction activities and operations.
Amazon’s investment follows a challenging period, including 27,000 global job cuts in 2023. However, the company’s focus on AI and cloud infrastructure underscores its strategic vision to lead the technology sector.
As the country advances its digital transformation, Amazon’s commitment reflects strong optimism about Australia’s technological and economic prospects.
