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Amazon has announced it will invest more than $20 billion into expanding data centre infrastructure in Australia by 2029 to strengthen artificial intelligence and cloud computing potential in the country.
The American technology company, considered to be the largest global technology investment announcement in Australia’s history, is expected to build national AI capability and position Australia as a technology leader.
In addition, three new solar farms in Victoria and Queensland will support the infrastructure expansion.
Amazon Web Services (AWS) has reportedly trained more than 400,000 people in Australia since 2017 to develop digital skills and is expected to continue to support generative AI programs like AWS AI Spring Australia and AWS Generative AI Accelerator.
“Honoured to host Prime Minister Anthony Albanese in Seattle today to announce our AU$20 billion investment to expand cloud infrastructure in Australia,” according to AWS chief executive Matt Garman.
“This is the largest publicly announced global tech investment in the country’s history and reflects the incredible innovation we’re seeing from Australian organisations and their growing demand for advanced cloud and AI capabilities.
“With this commitment, we’re also doubling down on sustainability with three new renewable energy projects to power our operations. From start-ups to enterprises to government agencies, we’re excited to support Australia’s digital future.”
“This planned investment deepens our long-term commitment to supporting the growth and development of Australian organisations of all sizes and helping them harness the enormous opportunity that generative AI offers.
“We’re proud to be expanding our world-class data centre infrastructure, bringing more renewable energy projects online, and supporting the country’s vision to be a global AI leader.
“AI is a once-in-a-generation transformation, and Amazon is pleased to be empowering all Australians to innovate at scale through this investment.”
The planned investment is expected to support the Australian government’s vision to improve productivity and grow the economy through AI innovation.
In July 2024, the Australian government announced a partnership with AWS to provide a “top secret” AWS Cloud to deliver cloud innovation in national security and defence, and enhance the nation’s defence and intelligence capabilities.
AI and automation are expected to contribute up to $600 billion annually to Australia’s gross domestic product (GDP) by 2030, according to the Australian government’s Department of Industry, Science and Resources.
“I am pleased to join Matt Garman to announce AWS’s investment of $20 billion over five years to further develop and expand its data centres 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.”
As part of the investment, Amazon has announced its intention to invest in three new solar farms in Victoria and Queensland. The company is investing in European Energy to deliver and operate the new projects, with Amazon committing to purchase a combined capacity of more than 170 megawatts (MW) across the three solar farms; it already invests in eight solar and wind projects across NSW, Queensland, and Victoria.
Once all 11 renewable energy projects are operational, they are estimated to generate more than 1.4 million megawatt hours of carbon-free energy annually, or enough to power about 290,000 Australian homes each year.
