Tech Bytes: Amazon to invest $20 billion in Australia's AI and tech infrastructure

Prime Minister Anthony Albanese, during a visit to Seattle over the weekend, joined Amazon Web Services (AWS) CEO Matt Garman to unveil a landmark A$20 billion investment by Amazon in Australia’s tech and artificial intelligence (AI) infrastructure.

The five-year investment aims to solidify Australia's position as a global leader in AI and cloud technology by expanding data centre infrastructure in Sydney and Melbourne, Albanese said, providing a major boost to the country’s digital economy.

“This significant investment will offer Australian industries the ability to take advantage of the revolutionary opportunities provided by artificial intelligence,” he said during the visit, ahead of the G7 summit in Canada beginning on Monday.

“It will build on Australia’s growing data centre infrastructure and contribute to our economic growth and resilience, including by providing more skilled jobs and AI-ready infrastructure.”

Strengthening AI and cloud capabilities

The investment is the largest of its kind ever announced in Australia and will support the rapid growth of AI applications and cloud computing, driving the development of next-generation infrastructure capable of handling complex AI workloads.

Amazon’s data centres, which will incorporate advanced networking, storage and analytics capabilities, will help Australian businesses innovate and scale with world-class AI and cloud technologies.

AWS's expansion will directly support Australia's vision of boosting productivity through AI innovation, the prime minister said. The Australian Government has previously projected that AI and automation could contribute up to $600 billion annually to the nation's GDP by 2030.

Renewable energy and sustainable growth

Amazon has also committed to powering its expanded data centres with renewable energy, supporting the nation’s transition to a greener economy.

To complement the infrastructure expansion, the company will develop three new solar farms in Victoria and Queensland, adding more than 170 megawatts of capacity and further enhancing the sustainability of Amazon’s operations in Australia.

With an ongoing commitment to renewable energy, Amazon already operates eight solar and wind projects across the country, helping to reduce the carbon footprint of its data centres.

Economic opportunities and job creation

The investment is expected to generate significant economic benefits for Australia, with the development of the new infrastructure set to create thousands of skilled jobs in areas such as data centre operations, AI development and cloud computing. According to AWS, the expansion will support up to 2,000 Australian jobs.

“This investment highlights AWS’s role as a trusted US-based global technology provider, with a strong presence in and commitment to Australia, reflecting Australia’s continued strength as an attractive destination for business and investment,” Albanese said.

The company will also continue to support initiatives like the AWS Generative AI Accelerator and the AWS AI Launchpad, designed to cultivate AI innovation and startup ecosystems. These initiatives are part of Amazon’s broader effort to upskill Australians, preparing them for the opportunities created by AI and cloud technologies.

“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,” Garman said. “AI is a once-in-a-generation transformation, and Amazon is pleased to be empowering all Australians to innovate at scale through this investment.”