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Amazon commits US$9 billion outlay in Singapore to expand cloud infrastructure

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6 months ago

May 7, 2024

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Amazon commits US billion outlay in Singapore to expand cloud infrastructure

Amazon.com plans to spend US$9 billion to expand its cloud computing infrastructure in Singapore, the latest global technology company to boost investment in Southeast Asia.

The outlay, to be done over the next four years, doubles the investment of subsidiary Amazon Web Services (AWS) in Singapore and helps it meet growing customer demand for cloud services and accelerate the adoption of artificial intelligence (AI), the company said on Tuesday.

AWS, which sells software and data storage for rent from massive server farms, has been expanding its footprint outside the United States in recent years, with much of that investment targeting Asian markets.

The skyline of Singapore’s central business district on February 14, 2024. Photo: Bloomberg

Including the Singapore investment, AWS has this year announced plans to spend about US$35 billion outside the US, including in Japan, Saudi Arabia and Mexico. The company is also setting up clusters of data centres in Malaysia and Thailand.

Amazon last month said AWS was on track to bring in more than US$100 billion in sales over the course of a year for the first time. Amazon executives said AWS is benefiting from corporate technology modernisation projects as well as demand for AI services.

The announcement came as part of an AWS Asean Summit in Singapore, where AI took centre stage with a series of initiatives from the US company. The city state was the first data centre region that AWS established in Asia.

“This investment will create a ripple effect across Singapore by increasing economic growth and cloud adoption,” said AWS country manager Priscilla Chong.

Amazon.com’s planned US$9 billion outlay in Singapore will double the investment of subsidiary Amazon Web Services in the city state. Illustration: Reuters

Amazon estimates that its planned investment will support an average of 12,300 full-time equivalent jobs in local Singapore businesses each year. The company will also conduct workshops for more than 100 businesses in two years, partnering with the Singapore government to help small businesses leverage generative AI.

Singapore has grown into a hub for US businesses in Asia, such as Meta Platforms and Google parent Alphabet, and is seen as a gateway to the broader Southeast Asia region, which is expected to grow at a rapid clip.