KEY FACTS: Amazon has announced a AU$20 billion (US$13.4 billion) investment to expand its AWS data center infrastructure in Australia from 2025 to 2030, marking the largest technology investment by a global company in the country’s history. The initiative aims to enhance Australia’s AI and cloud computing capabilities, supporting hundreds of thousands of AWS customers in cities like Sydney and Melbourne. The investment includes three new solar farms in Victoria and Queensland, providing over 170 megawatts of renewable energy and contributing to Amazon’s sustainability goals. The project is expected to create thousands of skilled jobs and drive up to AU$600 billion in annual GDP growth by 2030.
Source: About Amazon
Amazon Invests AU$20 Billion to Expand Australia’s AI and Cloud Infrastructure
Amazon has announced a staggering AU$20 billion (approximately US$13.4 billion) investment to expand its data center infrastructure across the country from 2025 to 2029. This initiative, revealed on June 14, 2025, marks the largest publicly announced technology investment by a global company in Australia’s history. The investment, spearheaded by Amazon Web Services (AWS), aims to supercharge the nation’s artificial intelligence (AI) capabilities, enhance cloud computing infrastructure, and drive significant economic and environmental advancements. The investment is focused on encouraging innovation, creating jobs, and supporting sustainable energy.
Amazon investing AU$20 billion to expand data center infrastructure in Australia and strengthen the nation’s AI future.
The largest global technology investment announcement in Australia’s history will help build national AI capability and position Australia as a global AI and technology leader.
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The AU$20 billion investment will primarily support the expansion, operation, and maintenance of AWS data centers in key Australian cities, including Sydney and Melbourne. These facilities will provide the backbone for advanced cloud computing services and generative AI workloads, addressing the surging global demand for AI-driven solutions. According to Amazon, the investment will empower hundreds of thousands of AWS customers and partners across Australia, enabling businesses of all sizes to modernize their operations, enhance productivity, and scale efficiently while adhering to local data residency and regulatory requirements.
Australian Prime Minister Anthony Albanese hailed the investment as a “huge vote of confidence in the Australian economy,” emphasizing its potential to boost productivity and position Australia for a tech-driven future. Albanese further noted that the investment will generate significant economic opportunities, including the creation of thousands of skilled jobs and the development of infrastructure capable of supporting complex AI and supercomputing applications.
The economic implications of Amazon’s investment are profound. According to the Australian Government’s Department of Industry, Science and Resources, AI and automation are projected to contribute up to AU$600 billion (approximately US$391 billion) annually to Australia’s gross domestic product (GDP) by 2030. Amazon’s investment is expected to accelerate this trajectory by providing the necessary infrastructure to support the rapid adoption of AI technologies across various industries. AWS aims to deliver reliable and efficient services to Australian businesses and consumers, foster innovation, and enable enterprises to leverage AI for transformative solutions by increasing server capacity and improving network connectivity.
To support this vision, Amazon is launching several programs to accelerate AI adoption in Australia. The AWS Generative AI Accelerator will nurture early-stage generative AI startups, providing them with the tools and resources to grow and innovate. Additionally, the AWS AI Launchpad program will assist Australian enterprises in embarking on and advancing their generative AI journeys, ensuring businesses can harness AI to drive efficiency and competitiveness. These initiatives reflect Amazon’s commitment to building a robust ecosystem for AI innovation in Australia.
Beyond technological advancements, Amazon’s investment includes a strong focus on sustainability. To power its expanded data center infrastructure, the company is investing in three new solar farms in Victoria and Queensland, which will collectively provide over 170 megawatts of renewable energy. These projects build on Amazon’s existing investments in eight solar and wind projects across New South Wales, Queensland, and Victoria, which power its data centers and fulfillment centers. Once all 11 renewable energy projects are operational, they are expected to generate more than 1.4 million megawatt hours of carbon-free energy annually, which is enough to power approximately 290,000 Australian homes each year.
This commitment to renewable energy aligns with Amazon’s sustainability goals and addresses the growing energy demands of AI-driven data centers. Amazon's partnership with European Energy will help to deliver and operate these solar farms, ensuring that its infrastructure expansion aligns with environmental responsibility, supporting Australia’s transition to a greener economy.
In recent months, the company has announced significant investments in other regions, including a $20 billion commitment to build two data centers in Pennsylvania and a $10 billion investment in North Carolina. These efforts underscore AWS’s focus on meeting the soaring global demand for cloud capacity fueled by the rapid rise of AI technologies. The Australian investment, however, stands out as the largest single technology investment in the country’s history, highlighting Australia’s strategic importance in the Asia-Pacific region.
The investment also comes on the heels of other strategic partnerships in Australia. In July 2024, AWS collaborated with the Australian government to launch a “Top Secret” AWS Cloud for national security and defense purposes, aimed at enhancing the nation’s defense and intelligence capabilities. Additionally, in April 2024, AWS introduced Amazon Bedrock, its fully managed generative AI service, in the AWS Asia Pacific (Sydney) Region, further solidifying its commitment to advancing Australia’s AI ecosystem.
Amazon’s AU$20 billion investment underscores the intensifying global competition among tech giants in the AI race. Companies like Microsoft and Google are also ramping up their data center investments to secure market share and meet the growing demand for AI workloads. The establishment of a robust presence in Australia will position Amazon to capitalize on the country’s burgeoning tech sector and its potential as a hub for AI innovation in the Asia-Pacific.
The investment is expected to have far-reaching economic impacts beyond the initial AU$20 billion. Amazon’s initiative will create thousands of skilled jobs and foster digital innovation, as well as support Australia’s ambition to become a global AI and technology leader. The enhanced infrastructure will also facilitate more efficient transactions and improvements in emerging technologies, such as blockchain and cryptocurrency operations, by offering faster processing speeds and robust data management capabilities.
While the investment has been widely praised, it also raises considerations about energy consumption and grid stability. The rapid expansion of AI-driven data centers has led to surging energy demands, prompting the Australian Energy Market Commission to explore new rules to ensure grid stability. Amazon’s investment in renewable energy projects mitigates some of these concerns, but the scale of the infrastructure expansion will require careful management to balance technological growth with environmental and operational sustainability.
With the investment, Amazon is not only transforming Australia’s digital landscape but also reinforcing its position as a global leader in the tech industry. As Prime Minister Albanese noted, the investment secures Australia’s “AI sovereignty” on resilient infrastructure, paving the way for a future where economic growth and technological innovation go hand in hand.
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