Amazon to Invest $13 Billion in Australia’s Data Center Infrastructure by 2027

Major investment aims to expand AWS cloud services, drive digital innovation, and boost local employment

Amazon Web Services (AWS), the cloud computing division of Amazon.com Inc, announced on Friday its commitment to invest A$20 billion (US$13 billion) in Australia’s data center infrastructure through 2027. The ambitious plan, revealed via a company statement and reported by Reuters, marks one of the largest technology infrastructure investments in the country’s history and is poised to significantly bolster Australia’s digital economy.

AWS Launches Massive Data Center Expansion in Australia

Investment Details and Timeline

The proposed multibillion-dollar investment will focus primarily on expanding AWS’s data center footprint in Melbourne and Sydney, Australia’s two largest cities. According to AWS, the funds will be used to build, upgrade, and enhance hyper-scale data centers — the backbone of modern cloud services. The expansion over the next three years is expected to accelerate the adoption of cloud-based solutions across industries, including finance, healthcare, education, and government.

“Today’s announcement underlines AWS’s long-standing commitment to Australia’s digital future,” said Sarah Bassett, AWS’s country leader for Australia. “Our continued investment will help Australian organizations unlock new opportunities through digital transformation and secure, resilient cloud technologies.” (Source: AWS press release)

Economic and Job Growth Impact

AWS estimates the investment will support about 11,000 full-time equivalent jobs annually across the country, spanning roles in construction, facility management, and supply chain support. The tech giant said that both direct and indirect employment, including at partner organizations, will benefit as the data center operations expand.

In total, AWS expects the project to contribute over A$15.9 billion (US$10.6 billion) to Australia’s GDP across the investment period. Angus Taylor, Australia’s Minister for Industry, lauded the move. “Amazon’s commitment is a testament to Australia’s robust digital economy and the strategic importance of our region for global technology players,” he said in Parliament on Friday.

Strengthening Digital Sovereignty and Cloud Adoption

The development comes amid rising demand for scalable and secure cloud infrastructure in Australia, driven by surging data usage, remote working, and digital transformation in multiple sectors. AWS’s investment is also seen as a critical step in strengthening the country’s digital sovereignty, ensuring data residency and compliance with Australian regulations.

Local industry experts note that the expanded availability of reliable cloud services is crucial to maintaining Australia’s global competitiveness—particularly given the rapid advancements in artificial intelligence, machine learning, and big-data applications.

Competitive Landscape and Broader Cloud Market Trends

Amazon’s move follows increased competition with other international cloud providers such as Microsoft Azure and Google Cloud, both of whom have announced significant Australian investments in recent years. According to Synergy Research, the Australian cloud market is forecast to exceed US$10 billion by 2026, with corporate and government agencies relying extensively on cloud-hosted services.

“The scale of this investment will help close the digital divide, foster innovation, and provide Australian startups and enterprises with world-class infrastructure right at home,” said John Lindsay, independent technology analyst.

Environmental Considerations and Sustainability Goals

AWS has emphasized that its new data centers will be developed in alignment with Amazon’s commitment to reach net-zero carbon emissions by 2040. The Australian data centers will rely on renewable energy projects and energy-efficient designs, supporting both national and global sustainability targets.

“We’re designing our infrastructure to not only meet performance and security requirements but also to set new industry standards in environmental sustainability,” added AWS’s Bassett.

Background: AWS’s Ongoing Investment in Australia

AWS has operated in Australia since 2012, with cloud regions based in Sydney and Melbourne serving customers from startups to major enterprises and public sector agencies. The latest A$20 billion pledge builds on AWS’s existing A$9 billion investment in the country’s infrastructure since launch.

AWS customers in Australia include Commonwealth Bank, Canva, and the Bureau of Meteorology, all citing enhanced agility and security through cloud adoption.

Looking Ahead: Implications for Australia’s Tech Ecosystem

Amazon’s landmark investment is expected to accelerate the growth of Australia's technology ecosystem, attract international players, and deepen skills development in digital fields. The federal and state governments have flagged additional grants and regulatory support for high-tech infrastructure projects, recognizing the critical role of data centers in facilitating the next wave of innovation.

Sources Used:

Reuters: Amazon to invest $13 billion in Australia's data center infrastructure

AWS official press statement (as referenced in Reuters)

Australian Government statements on technology infrastructure

Synergy Research cloud market reports

Public comments from industry experts