Amazon Web Services (AWS) has announced plans to invest A$20 billion (approximately US$13 billion) over the next five years to significantly expand its cloud computing and artificial intelligence (AI) infrastructure in Australia. The move marks AWS’s largest technology investment in the country to date and reinforces its long-term strategy of strengthening regional capabilities to meet rising global demand for advanced computing.
The investment, scheduled to run from 2025 through 2029, will fund the expansion, operation, and maintenance of AWS’s Australian data center infrastructure, with a strong emphasis on supporting generative AI workloads and increasing server capacity. According to AWS, this will not only enhance Australia’s AI capabilities but also contribute to economic growth, technology innovation, and job creation,
Australian Prime Minister Anthony Albanese praised the development on social media, calling it a “huge vote of confidence in the Australian economy” and a foundational step toward future-proofing the nation’s digital competitiveness.
AWS also announced that it will support this infrastructure expansion with renewable energy commitments, including the development of three new solar farms in Victoria and Queensland. The company plans to source more than 170 megawatts of renewable energy capacity from these projects, contributing to its goal of achieving fully carbon-neutral operations. AWS has already surpassed its 2023 target of 100% renewable energy usage and remains the world’s largest corporate purchaser of renewable energy.
The new infrastructure will build on AWS’s existing Australian presence, which began in 2012 with the opening of its first region in Sydney and later expanded to Melbourne in 2023. To date, AWS has invested over A$9.1 billion in the country and contributed significantly to the growth of the local cloud ecosystem, creating tens of thousands of direct and indirect jobs, particularly in data center operations and cloud-based IT services.
Google Cloud, Microsoft Azure
According to the Australian Department of Industry, Science and Resources, AI and automation could add up to A$600 billion annually to the country’s GDP by 2030. AWS’s expansion aligns closely with this projection, positioning the company as a key enabler of Australia’s digital transformation goals. It also comes as competition from other major cloud providers like Google Cloud and Microsoft Azure intensifies across the Asia-Pacific region.
Beyond economic gains, AWS emphasized the environmental benefits of its cloud model. A recent study with Accenture showed that companies migrating AI workloads to AWS could reduce carbon emissions by up to 94% compared to traditional on-premises data centers. AWS’s strategy to pair its AI infrastructure growth with sustainable energy sourcing addresses mounting concerns around the environmental cost of energy-intensive technologies, including generative AI and large language models.
Once operational, the three new solar projects will join AWS’s existing renewable energy assets in Australia, bringing the company’s total to eight such projects. Together, they are expected to generate approximately 1.4 million megawatt hours of clean electricity annually – enough to power nearly 290,000 Australian homes.
With this investment, AWS further cements Australia’s role as a strategic regional hub for cloud computing and AI innovation while reaffirming its commitment to environmentally responsible growth.
