Amazon Web Services (AWS) has announced plans to invest A$20 billion (approximately US$13 billion) between 2025 and 2029 to expand, operate, and maintain its data centre infrastructure across Australia. This marks Amazon’s largest technology investment in the country to date, aimed at strengthening its regional capabilities in cloud computing and generative AI workloads.
The initiative will focus on adding server capacity, enabling support for high-performance AI applications, and scaling up cloud infrastructure to meet rising enterprise demand. The announcement also aligns with broader global trends, where major tech companies are racing to secure data centre capacity to fuel next-gen AI tools and services.
New solar projects and multi-region expansion
As part of its infrastructure expansion, Amazon is investing in three new solar farms in Victoria and Queensland. The company has committed to purchasing over 170 megawatts of combined capacity across the new projects, contributing to Australia’s transition toward cleaner energy.
Also read: Meta Invests $14.8B in Scale AI Deal
Australian Prime Minister Anthony Albanese welcomed the announcement, describing it as a significant endorsement of Australia’s digital economy. “Amazon Web Services’ $20 billion investment in data centres in Australia will set us up for the future,” he said on X (formerly Twitter), calling it a major boost to productivity and economic growth.
Part of a global surge in AI infrastructure spending
Amazon’s Australia expansion comes amid a wave of multi-billion-dollar infrastructure investments by hyperscalers worldwide. In recent weeks, Amazon announced plans to invest $20 billion in Pennsylvania, $10 billion in North Carolina, and more than $5 billion in Taiwan to expand its AI cloud backbone.
As demand for generative AI accelerates, data centres are becoming critical infrastructure for tech giants looking to retain global cloud leadership. Amazon’s latest move not only reinforces its position in Australia but also signals the deepening interplay between AI deployment, sustainability goals, and national digital competitiveness.
(Credit: Reuters)
