Singapore is set to receive a $9 billion investment from Amazon to expand its cloud infrastructure, following in the footsteps of rival Microsoft. This announcement was made during the Amazon Web Services (AWS) ASEAN Summit on Tuesday by AWS Country Manager Priscilla Chong. The move comes as part of a trend of United States-based tech companies expanding in Southeast Asia, with Microsoft recently announcing major investments in artificial intelligence and cloud services in Malaysia, Thailand, and Indonesia.
This investment is expected to create more than 12,000 jobs at Singaporean businesses annually and add $23.7 billion to Singapore’s GDP. The expansion of tech companies in Southeast Asia is projected to boost the region’s economy, with AI expected to contribute nearly $1 trillion to the GDP by 2030.
Nvidia CEO Jensen Huang and Apple CEO Tim Cook have also visited countries in the region to explore opportunities, further fueling this growth. Additionally, Malaysia’s trade and investment minister Tengku Zafrul Aziz revealed that Google is planning to invest in the country soon.
Amazon’s investment in Singapore is a strategic move for the company to strengthen its position as the world’s leading cloud infrastructure provider through AWS. The success of its advertising and cloud businesses has led to a three-fold increase in operating income for the tech giant, reaching $15.3 billion. With this expansion into Southeast Asia, Amazon continues its dominance in the global technology marketplace while driving economic growth in the region.