Global Economy

Amazon Announces $9 Billion Investment Plan in Singapore for Cloud Service Expansion

Amazon has unveiled plans to invest $9 billion in Singapore to bolster its cloud infrastructure in the city-state, announced during the Amazon Web Services (AWS) ASEAN Summit. This move follows the tech giant’s substantial investments in cloud services in Malaysia and Thailand last year. AWS Country Manager Priscilla Chong stated that the investment aims to double down on cloud infrastructure in Singapore from 2024 to 2028, supporting customer demand and enhancing Singapore’s position as a regional innovation hub.

The investment is projected to create over 12,000 jobs annually in Singaporean businesses and contribute approximately $23.7 billion to the country’s gross domestic product (GDP). Amazon’s announcement reflects a broader trend of US-based tech giants expanding their presence in Southeast Asia. Microsoft recently announced significant investments in artificial intelligence (AI) and cloud services in Malaysia, Thailand, and Indonesia, while Nvidia CEO Jensen Huang and Apple CEO Tim Cook have also visited countries in the region to explore opportunities.

Malaysia’s trade and investment minister revealed that Google is set to announce investment plans in the country soon, further emphasizing Southeast Asia’s appeal to global tech companies. With AI expected to contribute nearly $1 trillion to the region’s GDP by 2030, Southeast Asia presents a lucrative market for tech investments. Amazon’s dominance in cloud infrastructure, particularly through AWS, underscores its position as a key player in the rapidly growing sector, contributing significantly to its recent three-fold rise in operating income driven by cloud and advertising businesses.