Amazon Unveils Historic AU$20 Billion Investment to Transform Australia into a Tech Powerhouse
Amazon has announced an unprecedented investment of AU$20 billion to enhance its data centre infrastructure in Australia, marking the largest technology investment in the nation’s history. This ambitious plan, scheduled to unfold between 2025 and 2029, aims to bolster Australia’s capabilities in artificial intelligence (AI) and cloud computing, positioning the country as a leader in global technology. The investment responds to the increasing demand for cloud services and AI, facilitating the broader adoption of these technologies and the modernization of businesses across Australia. Furthermore, this initiative aligns with the Australian government’s strategy to drive economic growth through AI innovation while ensuring compliance with local data residency regulations.
Since 2012, Amazon Web Services (AWS) has demonstrated its commitment to Australia with ongoing infrastructure developments. The opening of the AWS Asia Pacific (Sydney) Region laid the foundation for AWS’s presence in the country, followed by the launch of the AWS Asia Pacific (Melbourne) Region and the first AWS Local Zones in Perth in 2023. Recent advancements include the introduction of Amazon Bedrock, a generative AI service, and a partnership with the Australian Government to provide cloud support for national security and defence.
To facilitate the expansion of its cloud infrastructure, Amazon is also investing in three new solar farms located in Victoria and Queensland, with a total capacity exceeding 170 megawatts (MW). European Energy will oversee these projects, underlining Amazon’s commitment to sustainable practices alongside its Australian operations. This investment complements Amazon’s existing renewable projects across various states, which are expected to generate more than 1.4 million megawatt-hours of carbon-free energy annually, enough to power approximately 290,000 Australian homes.
Amazon’s Renewable Energy Investments: Pioneering Sustainable AI Solutions in Australia
From 2020 to 2022, Amazon allocated around AU$467 million to renewable energy initiatives in Australia. By 2024, the company emerged as the third-largest corporate buyer of renewable energy in the country and maintains its status as the leading corporate purchaser globally. Research by Accenture indicates that migrating heavy AI workloads to AWS can reduce carbon emissions by up to 94% compared to traditional on-premises data centres, benefitting from AWS’s advanced infrastructure and renewable energy strategies.
Australian Prime Minister Anthony Albanese expressed his enthusiasm for this historic investment, recognising it as a significant opportunity for the nation to enhance its AI capabilities through robust and secure infrastructure. He highlighted the potential for job creation and economic growth that accompanies such a substantial investment.
Matt Garman, CEO of AWS, emphasized the company’s long-term dedication to empowering Australian organisations of all sizes, enabling them to leverage the vast opportunities that generative AI presents. He affirmed AWS’s commitment to providing state-of-the-art data centre infrastructure and renewable energy projects, reinforcing Australia’s ambition to emerge as a global leader in AI.
This commitment to technological advancement aligns with the rollout of AWS AI Spring Australia, a suite of initiatives aimed at accelerating AI capabilities across various sectors. Key programmes include the AWS Generative AI Accelerator, designed to aid nascent generative AI startups, and the AWS AI Launchpad, which assists enterprises in their generative AI journeys. AWS intends to utilise its extensive infrastructure and expertise to foster local productivity and spur innovation in products and services.
Empowering Australia’s Digital Future: AWS’s Commitment to Skill Development and Innovation
Since 2017, AWS has trained over 400,000 individuals in Australia, enhancing skills in technology and facilitating the nation’s digital transformation. Through various programs, including AWS’s Work-Based Learning initiative and the AI Ready initiative aimed at providing free AI training to two million people globally by 2025, AWS reaffirms its commitment to building a skilled workforce for the future. The company continues to collaborate with educational and industry partners to develop comprehensive training strategies that prepare Australians for emerging technological roles.
AWS serves a wide range of clients in Australia, including enterprises, the public sector, and startups, many of whom are utilising AWS’s AI services to innovate and expand their operations. Among its user base are notable organisations such as ANZ Bank, Atlassian, Canva, Commonwealth Bank, and Telstra, highlighting AWS’s integral role in the country’s technological ecosystem.
Together with government bodies, private enterprises, and academic institutions, AWS is dedicated to unlocking Australia’s AI potential and nurturing the next generation of innovators in technology and AI.
