Amazon (NASDAQ: AMZN) Commits $13 Billion to Data Center Expansion in Australia, Powering the Nation’s AI Future

By: Mkeshav

On: Monday, June 16, 2025 9:32 AM


Amazon has unveiled plans for a investment of AU$20 billion (approximately US$13 billion) to expand, operate, and maintain its data center infrastructure in Australia over the next five years. Announced on June 14, this initiative marks the largest single technology investment ever made by a global firm in the country, underscoring Australia’s growing prominence as a hub for cloud computing and artificial intelligence.

The funding, which will be deployed from 2025 to 2029, is aimed squarely at boosting Australia’s digital infrastructure to meet surging demand for generative AI and cloud services. Amazon Web Services (AWS), the company’s cloud arm, will focus on increasing server capacity and supporting advanced AI workloads, enabling local businesses and organizations to accelerate innovation and productivity.

This strategic move aligns closely with the Australian government’s vision to harness AI and automation for economic growth. According to the Department of Industry, Science and Resources, such technologies are projected to contribute up to AU$600 billion annually to Australia’s GDP by 2030.

Prime Minister Anthony Albanese hailed the investment as a “huge vote of confidence in the Australian economy,” emphasizing its potential to boost productivity and future-proof the nation’s digital capabilities.

In addition to expanding its data center footprint—particularly in Sydney and Melbourne—Amazon is reinforcing its commitment to sustainability. The company will invest in three new solar farms in Victoria and Queensland, securing more than 170 megawatts of renewable energy capacity. Once operational, these projects are expected to generate over 1.4 million megawatt-hours of carbon-free energy annually, enough to power approximately 290,000 Australian homes.

Amazon’s investment is not only about infrastructure; it’s also about skills and security. AWS has already trained more than 400,000 Australians in digital skills since 2017 and will continue to support AI education and workforce development. The company’s partnership with the Australian government also includes the delivery of secure cloud services for national security and defense.

As global technology giants intensify their race to build out data center infrastructure, Amazon’s bold commitment positions Australia at the forefront of the digital economy—poised to lead in AI innovation, sustainability, and economic transformation.


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