Amazon has disclosed plans to invest a substantial amount of US$9 billion in Singapore over the next four years, specifically targeting the expansion of its cloud computing infrastructure in the city-state, according to a report by AFP.
This investment announcement closely follows a similar commitment made by Microsoft, which unveiled substantial investments in Southeast Asia just the previous week. This reflects the intense competition among tech giants to capitalize on the burgeoning demand in this region.
Amazon Expands its Cloud Computing Infrastructure in Singapore
According to Priscilla Chong, the Country Manager of Singapore for AWS (Amazon Web Services), this investment is part of AWS's strategy to bolster its cloud infrastructure in Singapore between 2024 and 2028, aiming to cater to the escalating demand for cloud services and facilitate the integration of artificial intelligence technologies.
The decision underscores AWS's intention to reinforce Singapore's standing as a vibrant hub for regional innovation and technology adoption.
Amazon's investment will support approximately 12,000 job opportunities within Singaporean businesses annually. Additionally, the company has collaborated with the Singapore government to expedite local enterprises' adoption of artificial intelligence.
Beyond the regional investments, Amazon has been making significant strides in its core businesses, with profits soaring threefold during the initial quarter of 2024. The flourishing cloud computing, advertising, and retail sectors drove this robust performance.
The company has ventured into innovative initiatives, such as deploying an AI chatbot named Rufus to provide shopping recommendations to customers via its mobile app in the United States. Furthermore, Amazon has introduced generative AI features to assist sellers in crafting compelling product listings.
Amazon has outlined plans to channel substantial investments into expanding AWS data centers across Mexico, Saudi Arabia, and the United States in the forthcoming years, as revealed in its recent earnings report.
Read Also: Microsoft Expands Cloud Infrastructure, AI Footprint in Indonesia with $1.7 Billion Investment
Investment Activities in Southeast Asia
The intensified investment activities in Southeast Asia by tech giants like Amazon and Microsoft underscore the region's strategic importance. Microsoft's recent commitment of US$2.2 billion towards artificial intelligence and cloud computing in Malaysia is a testament to this trend.
Additionally, Microsoft's CEO Satya Nadella announced a substantial investment of US$1.7 billion in Indonesia and the establishment of Thailand's inaugural data center region.
Despite its diminutive size, Singapore boasts significant economic prosperity and robust infrastructure, positioning itself as a pivotal business and technology hub within Southeast Asia, according to AFP's report.
This status has only been further solidified after the global pandemic, underscoring its attractiveness to multinational corporations seeking to capitalize on the region's growth potential.
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