Amazon invests $13 billion in AI and data centers in Australia
In a landmark move set to reshape Australia’s digital landscape, Amazon Web Services (AWS), the cloud computing arm of Amazon.com Inc., has unveiled a massive $13 billion (AU$20 billion) investment plan to bolster its data center operations across the country between 2025 and 2029. This marks the largest technology investment ever made in Australia by a global company.
Supporting a Nation’s Digital Ambitions
This multi-year investment underscores AWS’s commitment to supporting Australia's fast-growing appetite for cloud computing and artificial intelligence (AI). It is expected to serve as a catalyst for digital innovation across sectors—from finance and healthcare to education and defence.
“Australia is undergoing a once-in-a-generation AI transformation,” said AWS CEO Matt Garman. “This investment will allow businesses and governments to innovate securely, efficiently, and at scale.”
The Australian government has welcomed the move, with Prime Minister Anthony Albanese describing it as the type of high-impact investment that fuels economic growth, job creation, and technological advancement. “It will create skilled jobs, infrastructure for complex AI applications, and opportunity for innovation and growth,” he said.
Fueling AI Adoption and Economic Growth
The investment is set to significantly enhance Australia’s AI capabilities. By expanding its cloud infrastructure, AWS aims to support high-performance computing and data-intensive workloads while ensuring local data residency and compliance with Australian regulations.
According to the Department of Industry, Science and Resources, AI and automation could contribute as much as $388 billion (AU$600 billion) annually to Australia's GDP by 2030. AWS’s expanded infrastructure is expected to play a pivotal role in unlocking that potential.
A Decade-Long Commitment Deepens
AWS first entered the Australian market in 2012 with the launch of its Asia Pacific (Sydney) region. Since then, it has expanded operations with the addition of the Asia Pacific (Melbourne) region and local zones in Perth. In 2024, AWS brought its generative AI platform, Amazon Bedrock, to Sydney, further reinforcing its role in the country’s AI ecosystem.
The company also broke new ground by collaborating with the Australian government to develop a top-secret cloud for national security and defence use, demonstrating the strategic importance of its services.
Clean Energy to Power the Cloud
To meet the energy demands of its growing infrastructure while supporting sustainability goals, AWS is investing in three new solar farms in Victoria and Queensland. Operated by European Energy, these projects will supply over 170 megawatts of renewable energy, adding to AWS’s existing portfolio of eight wind and solar farms across the country.
When fully operational, the combined 11 projects are projected to generate over 1.4 million megawatt-hours of clean energy annually—enough to power nearly 290,000 Australian homes.
AWS cloud infrastructure is also more energy-efficient than traditional IT systems. A study by Accenture found that running AI workloads on AWS can reduce carbon emissions by up to 94% compared to on-premises data centers.
Preparing Australians for the AI Economy
Beyond infrastructure, AWS is investing heavily in workforce development. Through its AI Spring Australia initiative, AWS is offering tailored training for startups, enterprises, and individuals. Programs like the Generative AI Accelerator and AI Launchpad are helping Australians gain critical skills in AI and cloud computing.
Since 2017, AWS has trained more than 400,000 Australians and plans to expand this reach significantly. Initiatives like AI Ready and the Work-Based Learning Program are designed to ensure Australians are equipped for the jobs of the future.
A Global Cloud Race
This announcement aligns with Amazon’s broader global strategy to dominate the generative AI and cloud space. Similar infrastructure investments have recently been made in the U.S., including $20 billion commitments in Pennsylvania, North Carolina, and Taiwan.
With this latest move, AWS is not only investing in Australia’s digital infrastructure but also in its future—fueling innovation, sustainability, and skills that will define the next decade of economic growth.
