Amazon's AWS To Invest $15B In Japan's Cloud Computing Infrastructure

Amazon.com Inc‘s (NASDAQ:AMZN) cloud computing arm, Amazon Web Services (AWS), is set to make a substantial investment in Japan.

What Happened: AWS has announced plans to invest 2.26 trillion yen ($15.24 billion) in Japan by 2027. This investment is aimed at expanding the cloud computing infrastructure that underpins artificial intelligence (AI) services, Reuters reported. The expansion will include the development of new facilities in Tokyo and Osaka to meet the rising demand from customers.

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Japan’s AI development has been a priority for both the government and the corporate sector. Prime Minister Fumio Kishida has been actively engaging with industry leaders to discuss AI regulation and infrastructure.

Why It Matters: This move by AWS is in line with its global expansion strategy. In December, AWS announced a major expansion in Canada, which provided more options for running applications and serving users from data centers in Canada. This expansion also offered access to AWS technologies like data analytics, security, machine learning, and AI, fostering innovation.

Last year, in September, AWS and Anthropic joined forces in a billion-dollar partnership, challenging industry giants like NVIDIA Corp (NASDAQ:NVDA) and Microsoft Corp (NASDAQ:MSFT) in the AI arena. This partnership saw Anthropic selecting AWS as its primary cloud provider and committing to providing AWS customers worldwide with access to future generations of its foundation models via Amazon Bedrock, AWS’s fully managed service.

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