The tech industry giant Amazon has announced plans to invest $9 billion in Singapore to expand its cloud infrastructure in the city-state. This was announced at the Amazon Web Services (AWS) ASEAN Summit, indicating the company’s commitment to bolstering its presence in the region.
Priscilla Chong, AWS Country Manager, stated that Amazon is doubling down on its cloud infrastructure investments in Singapore from 2024 to 2028 in order to meet customer demand and strengthen Singapore’s position as a regional innovation launchpad. The investment is expected to support over 12,000 jobs at Singaporean businesses annually and add $23.7 billion to Singapore’s gross domestic product (GDP).
This move by Amazon is part of a trend among United States-based tech companies expanding their presence in Southeast Asia. Microsoft recently announced multibillion-dollar investments in artificial intelligence (AI) and cloud services in Malaysia, Thailand, and Indonesia. Nvidia CEO Jensen Huang and Apple CEO Tim Cook have also made visits to various Southeast Asian countries to explore opportunities in the region.
Meanwhile, Malaysia’s trade and investment minister Tengku Zafrul Aziz revealed that Google is also planning to invest in the country in the near future. The growing interest from major tech companies underscores the potential for AI to significantly impact Southeast Asia’s GDP, with estimates suggesting it could contribute nearly $1 trillion by 2030.
As the world’s largest cloud infrastructure provider in the first quarter of this year, Amazon’s AWS remains a key player in the tech industry. The company reported a substantial rise in operating income, driven largely by the strong performance of its advertising and cloud businesses. Amazon’s continued investments in Singapore and the Southeast Asian region demonstrate its commitment to growth and innovation in the cloud computing space.
