Amazon has unveiled an ambitious A$20 billion (US$13.02 billion) investment plan to expand its data centre infrastructure across Australia from 2025 to 2029, marking one of the largest technology infrastructure projects in the country’s history. The move aims to meet soaring demand for cloud computing and artificial intelligence (AI) services while accelerating the digital transformation of Australian businesses.
The investment, announced alongside Prime Minister Anthony Albanese and AWS CEO Matt Garman, underscores Amazon Web Services’ (AWS) deepening commitment to the region. The initiative is set to benefit AWS customers and partners by delivering advanced AI and cloud capabilities, while adhering to Australia’s data sovereignty and regulatory frameworks.
“I am pleased to join Matt Garman to announce AWS’s investment of A$20 billion over five years to further develop and expand its data centres in Sydney and Melbourne,” said Prime Minister Albanese. He emphasized that the project aligns with the federal government’s vision to boost productivity and economic growth through AI innovation.
According to the Department of Industry, Science and Resources, AI and automation technologies could add as much as A$600 billion annually to Australia’s GDP by 2030. Amazon’s investment is poised to play a critical role in unlocking that potential.
As part of the broader initiative, AWS is launching AI Spring Australia, a national campaign to drive AI adoption. This includes the AWS Generative AI Accelerator, targeting early-stage startups, and the AWS AI Launchpad, aimed at helping established enterprises integrate AI technologies into their operations.
This expansion builds on AWS’s existing Australian footprint. In 2023, AWS launched its Asia Pacific (Melbourne) Region and introduced the first AWS Local Zones in Perth. In 2024, it rolled out Amazon Bedrock, a fully managed generative AI service, and partnered with the Australian Government to develop a “Top Secret” AWS Cloud for national security needs.
“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,” said AWS CEO Matt Garman.
To support the growing energy demands of its infrastructure, Amazon is also expanding its renewable energy portfolio in Australia. The company will invest in three new solar farms in Victoria and Queensland through a partnership with European Energy, securing over 170MW of capacity. This complements eight existing solar and wind projects across New South Wales, Queensland, and Victoria.
The announcement follows Amazon’s recent US$10 billion investment in North Carolina to expand data centre capacity in the United States, further signaling the tech giant’s global push to lead in AI and cloud computing.
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As AWS continues to scale in Australia, it is clear the company is not just betting on the cloud—it’s banking on Australia’s future as a regional AI powerhouse.
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