- tech360.tv
Amazon's AWS to Invest $9 Billion in Singapore's Cloud Infrastructure
AWS to invest $9 billion in Singapore's cloud infrastructure over the next five years. Focus on construction and expansion of data center capabilities in the Asia-Pacific Singapore region. AWS has already invested over SG$11 billion in Singapore's cloud infrastructure and ecosystem
This investment will focus on the construction and expansion of data center capabilities in the region.
Priscilla Chong, the country manager of AWS Singapore, highlighted the significance of this investment during an interview with CNBC's "Street Signs Asia." She stated, "The investment will go into the construction and build-up of the DC capabilities, all associating with the Asia-Pacific Singapore region."
AWS, the cloud computing arm of the U.S. tech giant Amazon, first established its presence in Singapore in 2010, marking its initial expansion outside of the U.S. and Europe. Since then, AWS has already invested over SG$11 billion in Singapore's cloud infrastructure and ecosystem.
Chong emphasised AWS's commitment to the ASEAN region, stating, "Starting with our investment in Singapore in 2010, AWS has continued to strengthen their commitment to the ASEAN region, sharing the uplift [in] digital skills across the nations, providing secure and resilient infrastructure consistently across the region."
AWS has played a crucial role in supporting the digital economy ecosystem, particularly in the field of artificial intelligence (AI). The demand for cloud computing services and data centers has surged due to the AI boom, as training AI models requires vast amounts of data. Cloud service providers like AWS enable organisations to access digital resources, including advanced capabilities like AI and generative AI.
Tan Kiat How, the senior minister of state at Singapore's Ministry of Communications and Information, acknowledged the importance of cloud service providers in the digital economy. He stated, "Cloud service providers like AWS play an important role in improving the digital economy ecosystem. Besides being a foundational digital infrastructure for organisations, cloud service providers enable enterprises to easily access digital resources like compute and storage, as well as advanced capabilities like AI and generative AI."
In addition to investing in infrastructure, AWS has also prioritised upskilling and improving productivity in Singapore. Since 2017, the company has trained over 400,000 individuals in cloud skills and plans to continue investing in upskilling initiatives.
While the outlook for the digital economy remains positive, Tan Kiat How acknowledged the shortage of tech professionals in Singapore and globally. However, he expressed confidence that AWS's investments in cloud services and AI capabilities will help bridge this gap and support the ongoing digitalisation efforts in the region.
According to data from Synergy Research Group, AWS maintained its position as the world's largest cloud infrastructure provider in the first quarter of this year, holding a 31% share of the global market. Microsoft Azure followed closely behind in second place.
This announcement comes shortly after Microsoft's commitment to invest in AI and cloud-related initiatives in Southeast Asian countries such as Malaysia, Thailand, and Indonesia. AWS has also expanded its footprint in Southeast Asia, with plans to launch a region in Thailand with a $5 billion investment over 15 years and a commitment of at least $6 billion by 2037 for a new region in Malaysia. AWS had previously opened a region in Jakarta in December 2021.
AWS to invest $9 billion in Singapore's cloud infrastructure over the next five years
Focus on construction and expansion of data center capabilities in the Asia-Pacific Singapore region
AWS has already invested over SG$11 billion in Singapore's cloud infrastructure and ecosystem
Source: CNBC