The cloud computing arm of tech giant Amazon, Amazon Web Services (AWS), said it would spend a huge 2.26 trillion yen ($15.24 billion) in Japan by 2027. The plan is to greatly increase AWS’s infrastructure to meet the growing need for cloud-based artificial intelligence (AI) services.
The big investment that made the news is a big bet on Japan as a key market for next-generation technologies. Analysts say it could make AWS the clear leader in cloud computing and turn Japan into a world leader in AI.
AWS will use the money to build more data centers, servers, network equipment, and other important assets in Tokyo and Osaka. Japanese companies will be able to quickly make and use new AI tools for businesses, customers, and the government with this background.
Prasad Kalyanaraman, vice president of infrastructure services at AWS, said, “Our investment will help spur innovation across industries and bring advanced technologies like AI, machine learning, and quantum computing to more Japanese companies and organizations.”
People in the business world say that AWS’s big growth makes it even more of Japan’s top cloud platform. The new infrastructure will allow financial firms to use algorithmic trading, manufacturers to use smart factories, cars to use automated driving systems, and a lot more.
Reiko Matsuzawa, a senior tech analyst at Tokyo Research Institute, said, “This makes AWS the clear choice for any Japanese company that wants to use AI and other cutting-edge technologies that are based on cloud computing power.”
Recent polls show that more than 90% of big Japanese companies already use AWS for some part of their cloud needs. Analysts say that Microsoft and Google will have a hard time catching up in the Japanese market because of this huge investment.
The AWS infrastructure boost will also likely make Japan a center for AI research. As part of its Society 5.0 initiative, the government has made AI a top goal. However, many businesses say that their on-premises IT systems make it hard for them to come up with smart solutions.
AWS’s cloud platform gives developers the freedom and massive computing power they need to make AI tools and sell them. This could speed up the creation of new technologies that can be used in Japan and other places.
“With this investment, Japan will have the most advanced cloud computing infrastructure on the planet,” stated Kalyanaraman. “We look forward to seeing Japanese researchers, entrepreneurs and enterprises pioneer the next wave of innovation in artificial intelligence and many other leading-edge technologies.”
The huge spending plan is the latest step that AWS is taking to expand its reach around the world. It already works in 26 regions around the world, and it has plans to open new regional hubs in Spain, Switzerland, and the United Arab Emirates.
Yet, AWS’s investment in Japan is its biggest to date. This shows how strategically important it sees the world’s third-largest economy.