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Amazon to Invest $13 Billion in Data Centers and AI Infrastructure in Australia

New multibillion-dollar investment marks Amazon’s largest tech initiative in Australia and aims to support AI growth and renewable energy development.

Amazon to Invest $13 Billion in Data Centers and AI Infrastructure in Australia

AWS CEO Matt Garman with Australian Prime Minister Anthony Albanese (Photo: SBR)

BY Donna Joseph

SYDNEY, June 16, 2025 — Amazon said Saturday it will invest 20 billion Australian dollars, or $12.97 billion, between 2025 and 2029 to expand and operate its data center infrastructure in Australia, with a focus on supporting the country’s artificial intelligence capabilities.

The announcement, made in a company blog post, reflects Amazon’s largest technology investment in Australia to date. Funding will be allocated to expanding server capacity, maintaining existing infrastructure, and enabling generative AI workloads through its Amazon Web Services (AWS) arm.

In addition to its digital expansion, Amazon said it will back three new solar farms across Victoria and Queensland. Combined, these projects will add more than 170 megawatts of renewable energy to the company’s operations in the region.

Australian Prime Minister Anthony Albanese welcomed the move, describing it as a forward-looking investment that will have national benefits.

“Amazon Web Services' $20 billion investment in data centres in Australia will set us up for the future, boosting our economy and productivity,” Albanese said in a post on X. “This is a huge vote of confidence in the Australian economy.”

Global demand for generative AI has triggered a wave of data infrastructure spending by major technology firms. Amazon, Microsoft and Google have all ramped up efforts to scale their data center operations as AI applications place new demands on computing power and storage.

Earlier this week, Amazon said it would invest at least $20 billion in Pennsylvania to expand its U.S. data center footprint. That followed commitments of $10 billion in North Carolina and more than $5 billion for new cloud infrastructure in Taiwan.

Amazon’s announcement underscores Australia’s strategic role in the company’s global expansion plans, particularly as governments and private sectors seek greater access to high-performance computing tools.

With the dual focus on AI and renewable energy, the investment also signals Amazon’s intent to balance digital growth with sustainability commitments in the Asia-Pacific region.

 This is a huge vote of confidence in the Australian economy.