Singapore is set to see a significant boost in cloud infrastructure investments as Amazon has announced plans to invest $9 billion in the city-state. This news comes after rival Microsoft revealed major investments in Malaysia, Thailand, and Indonesia last week.
During the Amazon Web Services (AWS) ASEAN Summit on Tuesday, AWS Country Manager Priscilla Chong stated that AWS is increasing its cloud infrastructure investments in Singapore from 2024 to 2028 to meet customer demand and solidify Singapore’s position as a regional innovation hub. The investment is expected to create more than 12,000 jobs at Singaporean businesses annually and add $23.7 billion to Singapore’s GDP.
This move by Amazon is part of a trend of United States-based tech companies expanding in Southeast Asia. Microsoft recently announced significant investments in artificial intelligence and cloud services in Malaysia, Thailand, and Indonesia. Nvidia CEO Jensen Huang and Apple CEO Tim Cook have also visited countries in the region to explore opportunities.
In addition to Amazon’s investment, Google has also revealed plans to invest in Malaysia soon, further boosting the region’s economy. The expansion of tech companies in Southeast Asia is expected to contribute nearly $1 trillion to the GDP by 2030, with AI projected to be a major driver of this growth.
The recent financial performance of AWS parent company Amazon was driven by the success of its advertising and cloud businesses, leading to a three-fold increase in operating income to $15.3 billion. With this latest investment announcement, it seems that the world’s leading cloud infrastructure provider is committed to maintaining its dominance in the market for years