Amazon Web Services (AWS) has announced plans to invest A$20 billion ($12.97 billion) between 2025 and 2029 to expand and operate its data center infrastructure in Australia, marking its largest technology investment in the country to date.
The tech giant revealed the plan in a blog post on Saturday, emphasizing that the move will significantly enhance Australia’s artificial intelligence (AI) capabilities and position the nation as a global digital leader.
Amazon’s AI and Cloud Push in Australia
Amazon’s multibillion-dollar commitment will
- Expand server capacity across AWS facilities
- Support generative AI workloads
- Improve local cloud computing performance
- Drive productivity and economic growth
“This is a huge vote of confidence in the Australian economy,” said Prime Minister Anthony Albanese in a post on X (formerly Twitter).
“Amazon Web Services’ $20 billion investment in data centres in Australia will set us up for the future, boosting our economy and productivity,” he added.
Sustainability: Solar Power Projects in Victoria and Queensland
In addition to bolstering cloud infrastructure, Amazon will also invest in three new solar farms in:
- Victoria
- Queensland
These solar farms will contribute over 170 megawatts of renewable energy capacity, aligning with Amazon’s global push toward sustainable operations and carbon neutrality.
Why It Matters: Generative AI and Cloud Competition
With surging demand for AI infrastructure, cloud giants like Amazon, Microsoft, and Google are racing to:
- Expand global data centres
- Secure market dominance
- Meet enterprise and developer demand for generative AI workloads
AWS’s Australian expansion follows several similar global announcements:
- $20 billion investment in Pennsylvania (announced Monday)
- $10 billion in North Carolina (June 2025)
- $5+ billion in Taiwan for new cloud infrastructure
Economic and Tech Impact in Australia
The massive infrastructure push is expected to:
- Create thousands of jobs in construction, IT, and engineering
- Enhance AI R&D within Australia
- Provide reliable, low-latency cloud access for local businesses
- Attract international tech talent and investment
