Amazon has announced a game-changing AU$20 billion investment to transform Australia into a global AI powerhouse, marking the largest technology investment commitment in the nation’s history.
The massive five-year funding pledge will expand Amazon Web Services (AWS) data centre infrastructure across Sydney and Melbourne from 2025 to 2029, directly supporting the government’s vision to boost productivity and economic growth through artificial intelligence innovation.
Prime Minister Anthony Albanese joined AWS CEO Matt Garman in Seattle to announce the historic investment, emphasising its potential to create skilled jobs and position Australia as a world leader in AI and cloud computing.
Building national AI capability
The investment comes as demand for cloud computing and AI services surges across Australian businesses of all sizes. According to the Department of Industry, Science and Resources, AI and automation could contribute up to AU$600 billion annually to Australia’s GDP by 2030.
“I am pleased to join Matt Garman to announce AWS’s investment of AU$20 billion over five years to further develop and expand its data centres in Sydney and Melbourne,” Prime Minister Anthony Albanese said.
“This is the largest investment our country has seen from a global technology provider, and is an exciting opportunity for Australia to build AI capability using secure, resilient infrastructure. This is exactly the kind of economic investment in our nation that we want to see, and creates opportunities for continued innovation and growth. The investment will generate economic opportunity for Australians, including skilled jobs and infrastructure that can support complex AI and supercomputing applications.”
The expanded infrastructure will serve hundreds of thousands of AWS customers and partners, ensuring local data residency and meeting regulatory requirements while providing access to cutting-edge cloud and AI capabilities.
More than a decade of growth
Amazon’s Australian journey began in 2012 with the Sydney region launch, followed by the Melbourne region in 2023 and Local Zones in Perth. The company has consistently expanded its local presence, including launching Amazon Bedrock – AWS’s fully managed generative AI service – in Sydney last year.
In July 2024, the Australian Government announced a partnership with AWS to provide “Top Secret” cloud services for national security and defence applications, highlighting the strategic importance of the collaboration.
Powering progress with clean energy
Supporting the infrastructure expansion, Amazon is investing in three new solar farms across Victoria and Queensland, adding more than 170 megawatts of renewable energy capacity. European Energy will deliver and operate these projects as part of Amazon’s broader sustainability commitment.
The company already operates eight solar and wind projects across New South Wales, Queensland, and Victoria. Once all 11 renewable energy projects are operational, they’ll generate over 1.4 million megawatt hours of carbon-free energy annually – enough to power approximately 290,000 Australian homes.
From 2020 to 2022, Amazon invested an estimated AU$467 million in renewable energy projects across Australia. In 2024, the company ranked as the third-largest corporate purchaser of renewable energy in Australia and remains the largest globally.
Skills development at scale
Beyond infrastructure, Amazon is committed to developing Australia’s AI workforce. Since 2017, AWS has trained more than 400,000 people across the country, supporting career acceleration and contributing to digital transformation.
The recently launched AWS AI Spring Australia provides comprehensive programs to accelerate AI adoption across different sectors. Initial offerings include the AWS Generative AI Accelerator for early-stage startups and AWS AI Launchpad for enterprises beginning their generative AI journey.
Amazon’s commitment extends to various skills programs, including the Work-Based Learning Program for data centre operations and the global AI Ready initiative, which aims to provide free AI skills training to two million people worldwide by 2025.
Real-world impact
Major Australian organisations are already leveraging AWS’s AI and cloud services to transform their operations. The customer base spans enterprises like ANZ Bank, Commonwealth Bank, and Westpac, innovative companies such as Atlassian and Canva, and emerging startups across various sectors.
“This planned investment deepens our long-term commitment to supporting the growth and development of Australian organisations of all sizes,” AWS CEO Matt 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.”
Environmental excellence
According to an Accenture study, Australian organisations migrating compute-heavy AI workloads to AWS can reduce carbon emissions by up to 94% compared to on-premises data centres. This reduction comes from efficiencies in AWS’s infrastructure hardware, power and cooling systems, and carbon-free energy procurement.
The AU$20 billion commitment represents more than just infrastructure investment – it’s a strategic partnership aimed at unlocking Australia’s AI potential and nurturing future generations of technology innovators.
Working alongside government, private sector partners, and academic institutions, AWS is positioning Australia to compete on the global AI stage while ensuring local businesses have access to world-class technology infrastructure.
As AI continues to reshape industries worldwide, this historic investment ensures Australia won’t just be a participant in the AI revolution – it will be a leader driving innovation and economic growth for decades to come.
The announcement signals strong confidence in Australia’s technology sector and its potential to become a regional hub for AI development and deployment, setting the stage for sustained economic growth and technological advancement.
Full Amazon press release – see here
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