Global online retail and cloud computing leader Amazon announced plans Tuesday to invest a record $13 billion in Australia’s artificial intelligence (AI) and cloud infrastructure by 2029.
The $20 billion Australian dollar investment is designed to expand, operate and maintain Amazon Web Services (AWS) data centers within the nation. Analysis firm Statista Monday reported global interest in generative artificial intelligence tools more than doubled from 2022 to 2023, according to survey data.
“This is the largest investment our country has seen from a global technology provider,” Prime Minister Anthony Albanese stated. “It represents an exciting opportunity for Australia to build AI capability using secure, resilient infrastructure.”
“This investment will generate significant economic opportunity for Australians, including skilled jobs and infrastructure capable of supporting complex AI and supercomputing applications.”
Environmental sustainability features prominently within the investment plan. A portion of the funds will be allocated to constructing three new renewable solar farms across Victoria and Queensland, adding to Amazon’s current portfolio of 11 renewable energy projects nationwide.
Collectively, these solar initiatives are projected to generate approximately 1.4 million megawatt hours of carbon-free energy annually. This output is estimated to power around 290,000 Australian homes.
Amazon first entered the Australian market in 2012 with the launch of its AWS Asia Pacific hub in Sydney. In July 2024, the Australian government collaborated with AWS to establish a specialized “Top Secret” cloud environment serving national security and defense needs.
Concurrently, Amazon announced Monday that it has formed a strategic partnership with Pennsylvania utility Talen Energy. The agreement sees Amazon secure long-term nuclear energy supplies to power its AWS servers and AI data centers in the region for the next two decades.
This initiative follows the tech giant’s announcement last week of a $20 billion investment in its own AI infrastructure within Pennsylvania.
Projected Economic Impact
The Japanese Ministry of Economy, Trade and Industry forecasts that advancements in AI and automation technologies will collectively contribute an additional $400 billion annually to Australia’s gross domestic product by 2030.
Amazon has already demonstrated a commitment to renewable energy in Australia, investing over $312 million in such projects between 2020 and 2022.
AI Infrastructure Investment Trend
Amazon’s announcement underscores an ongoing global trend as major technology companies increasingly allocate substantial capital towards developing AI infrastructure capabilities.
