Amazon to Invest $13 Billion in Australia's AI and Cloud Infrastructure

According to Cointelegraph, Amazon has announced plans to invest over $13 billion in Australia's artificial intelligence and cloud infrastructure by 2029. This significant investment, amounting to 20 billion Australian dollars, marks the largest technology investment in the country by a global company. The funds will be directed towards expanding, operating, and maintaining Amazon Web Services (AWS) data centers across Australia. Australian Prime Minister Anthony Albanese highlighted the importance of this investment, stating that it represents a major opportunity for the nation to enhance its AI capabilities using secure and resilient infrastructure. The initiative is expected to create economic opportunities for Australians, including the creation of skilled jobs and infrastructure to support complex AI and supercomputing applications. A portion of the $13 billion investment will be allocated to the construction of three new renewable solar farms in Victoria and Queensland. These projects will increase Amazon's total renewable energy initiatives in Australia to 11. The solar farms are projected to generate approximately 1.4 million megawatt hours of carbon-free energy annually, which is enough to power around 290,000 Australian homes. Amazon's presence in Australia began in 2012 with the launch of the AWS Asia Pacific in Sydney. In July 2024, the Australian government collaborated with AWS to introduce a "Top Secret" AWS Cloud for national security and defense purposes. Additionally, on June 11, Amazon partnered with Talen Energy to secure nuclear energy for AWS servers and AI data centers in Pennsylvania until 2042. This partnership followed Amazon's announcement of a $20 billion investment in AI infrastructure in Pennsylvania, reflecting a broader trend among tech firms to enhance AI capabilities. The ongoing investment in AI services and automation is poised to significantly boost Australia's economy. According to the Government’s Department of Industry, Science and Resources, AI and automation-related advancements are expected to contribute an annual $400 billion to the country's gross domestic product (GDP) by 2030. Between 2020 and 2022, Amazon invested over $312 million in Australian renewable energy projects, underscoring its commitment to sustainable development.