Singapore is set to receive a significant boost as Amazon announced plans to invest $9 billion in the city-state to expand its cloud infrastructure. This announcement 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.
Furthermore, Malaysia’s trade and investment minister Tengku Zafrul Aziz revealed that Google is planning to invest in the country soon. The expansion of tech companies in Southeast Asia is expected to boost the region’s economy, with AI projected to contribute nearly $1 trillion to the GDP by 2030.
Amazon’s investment in Singapore is a strategic move to strengthen its position as the world’s leading cloud infrastructure provider, especially through AWS. The tech giant’s recent financial performance was driven by the success of its advertising and cloud businesses, leading to a three-fold increase in operating income to $15.3 billion.