Amazon is set to invest A$20 billion (approximately US$13 billion) from 2025 to 2029 to expand, operate, and maintain its data center infrastructure in Australia, specifically in Sydney and Melbourne. This investment marks the largest publicly announced technology investment from a global tech provider in Australian history[1][2][3][5].
The primary goal of this extensive spending is to bolster Australia’s AI and cloud capabilities, positioning Amazon Web Services (AWS) as a leader in AI-powered cloud services in the country. The investment aims to accelerate AI adoption and enhance the modernization of Australian organizations across all sectors by providing the latest cloud and AI technologies. This initiative aligns with the Australian government’s vision to improve productivity and economic growth through AI innovation[1][3][5].
In addition to expanding data centers, Amazon will invest in renewable energy projects to support the growing energy demands of its infrastructure. It announced plans to invest in three new solar farms located in Victoria and Queensland, managed by the Danish green energy company European Energy. Amazon has committed to purchasing over 170 MW of combined capacity from these farms, supplementing its existing investments in eight other solar and wind projects across Australia. These renewable energy initiatives are expected to generate significant carbon-free electricity to power Amazon’s data centers sustainably[2][5].
The Australian government recognizes AI and automation as critical drivers of future economic growth, expecting these technologies to contribute up to A$600 billion annually to the country’s GDP by 2030. The government is also developing a National AI Capability plan to boost AI skills and support local industries by the end of the year. Prime Minister Anthony Albanese highlighted the Amazon investment as a crucial opportunity for Australia to build AI capabilities using secure and resilient infrastructure, which will generate skilled jobs and support complex AI and supercomputing applications[1][3][5].
AWS has been present in Australia since 2012 and has already contributed significantly to the local digital skills ecosystem, having trained over 400,000 people since 2017. The company recently launched Amazon Bedrock, a fully managed generative AI service, in Australia and partnered with the Australian government on classified cloud projects to enhance national security and defense capabilities[2][3][5].
Globally, Amazon is aggressively expanding its cloud infrastructure, with multi-billion investments in France, Singapore, the UK, and Germany, reflecting its commitment to maintaining leadership in cloud and AI services worldwide[2].
In summary, Amazon’s A$20 billion investment in Australia is a landmark commitment that will expand the nation’s AI and cloud infrastructure, foster innovation, create skilled jobs, and support sustainable energy use, reinforcing Australia’s position in the global digital economy.
