Amazon Web Services (AWS) has announced a major AU$20 billion investment over five years to expand its cloud infrastructure in Australia, marking the largest investment the country has seen from a global technology provider.
The investment will support the development and expansion of AWS data centers in Sydney and Melbourne, providing enhanced cloud and artificial intelligence capabilities to hundreds of thousands of AWS customers and partners across Australia
The announcement comes as Australia positions itself as a leader in AI innovation, with the Department of Industry, Science and Resources projecting that AI and automation could contribute up to AU$600 billion annually to Australia’s GDP by 2030.
“I am pleased to join Matt Garman to announce AWS’s investment of AU$20 billion over five years to further develop and expand its data centers in Sydney and Melbourne,” said Prime Minister Anthony Albanese,
“This is the largest investment our country has seen from a global technology provider, and is an exciting opportunity for Australia to build AI capability using secure, resilient infrastructure,”
“This is exactly the kind of economic investment in our nation that we want to see, and creates opportunities for continued innovation and growth,”
“The investment will generate economic opportunity for Australians, including skilled jobs and infrastructure that can support complex AI and supercomputing applications.” he said.
Expanding AWS Presence in Australia
AWS first established its presence in Australia in 2012 with the launch of the AWS Asia Pacific (Sydney) Region. The company has since expanded significantly, launching the AWS Asia Pacific (Melbourne) Region in 2023 and establishing the country’s first AWS Local Zones in Perth the same year.
In April 2024, AWS introduced Amazon Bedrock, its fully managed generative AI service, to the Sydney region. Three months later, the Australian Government announced a partnership with AWS to provide a “Top Secret” AWS Cloud designed to enhance the nation’s defense and intelligence capabilities.
Renewable Energy Commitment
Alongside the infrastructure investment, Amazon is committing to sustainable energy practices through the development of three new solar farms in Victoria and Queensland.
European Energy will deliver and operate these projects, with Amazon purchasing a combined capacity of more than 170 megawatts across the three facilities.
This expansion builds on Amazon’s existing renewable energy portfolio in Australia, which includes eight solar and wind projects across New South Wales, Queensland, and Victoria. The projects currently help power Amazon’s Australian operations, including data centers and fulfillment centers.
Once all 11 renewable energy projects become operational, they are expected to generate more than 1.4 million megawatt hours of carbon-free energy annually — sufficient to power approximately 290,000 Australian homes each year.
The investment underscores Australia’s growing importance as a hub for cloud computing and AI innovation in the Asia-Pacific region, while supporting the government’s broader economic strategy to leverage technology for productivity growth and economic expansion.
