Amazon to invest $9B in Singapore cloud infrastructure expansion
Amazon Web Services (AWS) has announced that it will invest approximately $8.88 billion to expand its cloud infrastructure in Singapore. This is part of a larger initiative to expand company’s presence in Southeast Asia. The new investment will add to the $11.5 billion Aws has already invested in the region through 2023, bringing total investment to $23 billion by 2028.
The decision comes after Microsoft announced it plans to invest billions of dollars in the same sectors in Southeast Asia. The company plans to channel investments and initiatives into various projects in Indonesia, Malaysia and Thailand, which highlights its commitment to the local economy.
The investments from AWS will be aimed at meeting growing demand for cloud services and accelerating the adoption of artificial intelligence (AI). This contributes to the creation of approximately 12,300 full-time jobs in local companies in Singapore. The company will also host workshops for over 100 businesses in collaboration with the Singapore government to help small businesses embrace AI.
AWS is actively expanding its presence outside the US, particularly in Asian markets. In addition to Singapore, the service plans to spend about $35 billion in the markets of Japan, Saudi Arabia and Mexico.
The plans were unveiled at the AWS ASEAN Summit in Singapore, where AI is highlighted as a key focus by the US company’s efforts. Singapore became the first regional AWS data center in Asia. This investment will have an impact throughout Singapore’s economy, accelerating growth and the development of cloud technologies.
Singapore has become a key hub for US companies in Asia, including Meta Platforms Inc. and Alphabet Inc., and is seen as an entry point into the broader Southeast Asia region, which is expected to grow rapidly.
Investments from other technology companies
Leading technology companies are battling for their share of Southeast Asia’s budding market. Nvidia already has a strong presence in the country, while Apple plans to increase its investment in Singapore by more than $250 million. In addition, Google is also planning to invest in Malaysia. This highlights the intense competition between tech giants for leadership in the growing cloud services and innovation market in the Southeast Asia region.
