Amazon to invest $20B in Australia AI and cloud infrastructure
Amazon expands AI and cloud reach in Australia
The American company Amazon has announced an ambitious plan to invest A$20 billion (US$12.97 billion) between 2025 and 2029 to expand, operate, and maintain its cloud infrastructure in Australia.
This project represents Amazon’s largest publicly announced technology investment in the country and is expected to significantly strengthen Australia’s position in the fields of artificial intelligence (AI) and the digital economy, according to the company’s website.
The investment allows Amazon to expand its data center presence in Sydney and Melbourne, meeting growing demand for cloud services and compute-intensive AI workloads. The initiative aligns with the Australian government’s strategy to modernize the economy through technology-driven innovation. According to the Department of Industry, Science and Resources, AI and automation could contribute up to A$600 billion annually to Australia’s GDP by 2030.
Government support and renewable energy development
Australian Prime Minister Anthony Albanese called the move a strategic step toward enhancing national productivity and a strong vote of confidence in the country's economic future. He emphasized that the investment would help create skilled jobs and develop robust AI infrastructure.
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Matt Garman, CEO of Amazon Web Services (AWS), noted that this initiative builds on more than a decade of AWS operations in Australia. It includes the launch of new regions, Local Zones, and services such as Amazon Bedrock, a fully managed generative AI offering.
To support the infrastructure expansion sustainably, Amazon will fund the construction of three new solar farms in Victoria and Queensland. European Energy will supply over 170 megawatts of capacity, which, combined with Amazon’s existing eight renewable energy projects in the region, will generate 1.4 million megawatt-hours of clean energy annually — enough to power approximately 290,000 Australian homes.
AI initiatives and workforce development
As part of its broader AI strategy, Amazon has launched AI Spring Australia, a program that includes accelerators for generative AI startups and enterprise transformation tools. Since 2017, Amazon has trained over 400,000 Australians, and programs like AI Ready and Work-Based Learning continue to support skill development and career growth.
Leading Australian companies — including Commonwealth Bank, Canva, Telstra, Westpac, Atlassian, and nib Group — already rely on Amazon’s cloud and AI solutions. The new investment is intended to amplify this momentum and solidify Australia’s position as a global leader in secure, scalable AI infrastructure.
Previously, we reported that Amazon and Walmart are also considering launching their own US dollar–backed stablecoins.
