Amazon Web Services (AWS) has announced a landmark AU$20 billion investment to expand its data center infrastructure across Australia by 2029—marking the country’s largest-ever tech investment. The move positions Australia as a future global leader in artificial intelligence (AI), sustainable cloud computing, and digital innovation.
The investment will significantly grow AWS’s presence in Sydney and Melbourne, strengthen cloud computing capacity, and expand access to generative AI tools for public and private sector users. It is expected to create skilled jobs, attract international technology partnerships, and help build a competitive AI ecosystem in line with the federal government’s AI strategy.
The Largest Tech Investment in Australia’s History
Announced on June 14 by AWS CEO Matt Garman and Australian Prime Minister Anthony Albanese, the AU$20 billion plan includes expansion, operations, and maintenance of existing and new AWS data center infrastructure in Australia.
“This is exactly the kind of economic investment in our nation that we want to see,” said Prime Minister Albanese. “It creates opportunities for continued innovation and growth.”
According to the Department of Industry, Science and Resources, AI and automation could add up to AU$600 billion to Australia’s GDP by 2030. Amazon’s infrastructure commitment directly supports this vision, giving enterprises, startups, and researchers access to secure, scalable AI compute capacity within national borders.
“AI is a once-in-a-generation transformation,” said Matt Garman, CEO of AWS. “Amazon is pleased to be empowering Australians to innovate at scale through this investment.”
Solar-Powered Expansion: Three New Renewable Energy Projects
To support the cloud infrastructure expansion, AWS will invest in three new solar farms in Victoria and Queensland, developed by European Energy. Together, these projects will add over 170 megawatts (MW) of clean energy capacity to AWS’s Australian operations.
Once completed, Amazon will operate a total of 11 renewable energy projects across Australia—generating more than 1.4 million megawatt hours (MWh) of clean electricity per year, enough to power around 290,000 homes.
This aligns with AWS’s global target to reach 100% renewable energy use by 2025, and positions it as Australia’s largest corporate buyer of renewable energy.
Generative AI at Scale: New Programs, New Capability
The investment supports new AWS initiatives, including AI Spring Australia, a multi-year effort to boost generative AI adoption across industries. Key programs include:
- AWS Generative AI Accelerator – for early-stage AI startups
- AWS AI Launchpad – to help enterprises deploy AI tools
- Amazon Bedrock – launched in Sydney in 2024, provides fully managed generative AI services
These tools will give businesses—from banks to biotech firms—access to powerful large language models and high-performance infrastructure designed for compute-heavy workloads.
AWS data shows that 81% of Australian startups are already using AI, and this investment is expected to fast-track their growth by making AI compute more affordable and accessible.
National Security and Local Data Residency
Beyond commercial use, AWS has also partnered with the Australian Government on a ‘Top Secret Cloud’ to support national defense and intelligence. The secure cloud will give key federal agencies access to AI and supercomputing capacity that meets strict regulatory and data residency requirements.
The availability of locally hosted infrastructure ensures sensitive data stays within Australia—meeting privacy, cybersecurity, and compliance standards while supporting sovereign digital transformation goals.
A Decade-Long Commitment to Upskilling
Amazon’s investment also includes a long-term plan to upskill Australian workers. Since 2017, AWS has trained over 400,000 individuals across Australia through free and low-cost training programs.
These include:
- AI Ready – global initiative aiming to train 2 million people in AI by 2025
- AWS Work-Based Learning Program – 12-month training for data center operations
- Partnerships with universities, TAFEs, and technical colleges
Increased infrastructure investment means growing demand for cloud technicians, AI engineers, and digital architects—making skills training an essential part of the expansion strategy.
“We’re proud to support Australian workers and businesses in building the skills needed for tomorrow’s AI economy,” said Garman.
Strategic Outlook: Building Australia’s AI Economy
From Canberra’s AI Action Plan to regional smart city pilots, Australia is investing heavily in digital transformation. Amazon’s latest move is likely to accelerate this trend by:
- Giving small and medium businesses access to high-end AI tools
- Encouraging global tech companies to co-invest in the region
- Enhancing Australia’s position in the global AI race
According to Accenture, migrating AI workloads to AWS could reduce emissions by up to 94% compared to traditional on-premise data centers—giving green credibility to this AI growth model.
