(Bloomberg) — Amazon.com plans to spend $9 billion to expand its cloud computing infrastructure in Singapore, the latest global tech company to boost investment in Southeast Asia.
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The spending, to be carried out over the next four years, will double Amazon Web Services’ investment in Singapore and help meet growing customer demand for cloud services and accelerate the adoption of artificial intelligence, the company announced on Tuesday. did.
AWS, which rents and sells software and data storage from large server farms, has expanded outside the United States in recent years, with many of its investments targeting Asian markets. Companies from Microsoft to Apple have also grown in Southeast Asia, a market of more than 650 million people, partly due to diversification from China and geopolitics amid tensions between Beijing and Washington. This is to reduce scientific risk.
This year, AWS announced plans to spend about $35 billion outside the United States, including in Japan, Saudi Arabia and Mexico, including investments in Singapore. The company has also set up clusters of data centers in Malaysia and Thailand.
Amazon announced last month that AWS is on track to generate more than $100 billion in annual revenue for the first time. Amazon executives say AWS is benefiting from corporate technology modernization projects and demand for AI services.
The announcement comes as part of the AWS ASEAN Summit in Singapore, where AI will take center stage in a series of initiatives by U.S. companies. The city-state was the first data center region established by AWS in Asia.
Singapore is a growing hub for American companies in Asia, including Meta Platforms Inc. and Alphabet Inc., and is seen as a gateway to the broader Southeast Asian region, which is poised for rapid growth.
Microsoft, Amazon’s biggest rival in cloud services, held a tour of the local economy last week where Chief Executive Officer Satya Nadella announced a series of new investments and initiatives in Indonesia, Malaysia and Thailand.
–With assistance from Matt Day.
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