"Amazon will invest $12.97 billion from 2025 to 2029 to expand, operate and maintain its data centre infrastructure in Australia. In doing so, the company will boost the country's artificial intelligence (AI) capabilities.

The investment is Amazon's largest global technology commitment in Australia, with the funding targeting new server capacity and support for generative AI workloads.

The company is also investing in three new solar farms in Victoria and Queensland and will commit to purchasing a combined capacity of over 170 megawatts across the three farms.

"Amazon Web Services' $20 billion (Australian) investment in data centres in Australia will prepare us for the future, boosting our economy and productivity," Australian Prime Minister Anthony Albanese wrote on X.

"This is a huge vote of confidence in the Australian economy," he added.

Major tech companies around the world are expanding their infrastructure to support the rapidly growing demand for generative AI and cloud computing.

Companies such as Amazon, Microsoft and Google are increasing their investment in data centres to secure market share and meet AI workload demands.

"Amazon announced that it plans to invest at least $20 billion in Pennsylvania to expand data center infrastructure, adding to the billions of dollars the tech giant has allocated to AI expansion. 

In early June, the company said it would invest $10 billion in North Carolina and announced plans to invest more than $5 billion in its new cloud infrastructure in Taiwan. | BGNES