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Published on
June 16, 2025
5 min read
Amazon Expands Data Centers in Australia with $13B Green Energy Plan
Amazon has announced plans to invest $13 billion to expand its AI infrastructure in Australia, the Verdict has reported. The investment is aimed at enhancing the capacity of Amazon data centers in Australia as the US tech giant seeks to leverage global demand for AI. Amazon plans to roll out the investment until 2029 as part of its strategy to strengthen Australia’s AI and cloud computing capabilities.
Setting the Pace
Amazon aims to lead in renewable energy by expanding its data centers using solar and wind energy, instead of conventional energy sources. The Australian tech investment includes power purchase agreements entered with three solar plants established by European Energy.
One of the plants, Mokoan Solar Park, is operational. It is located in Victoria. The remaining projects, Bullyard Solar and Winton North Parks, will increase the solar capacity to 333MW. Amazon has committed to purchase in excess of 170MW from the three sources for its AWS renewable energy projects as it transitions to green energy and data center growth.
According to Amazon Web Services CEO Matt Garman, AWS generative AI support places Australia at a strategic position where the country can tap the economic potential that AI presents. Already, the company is active in eight solar project sites across Queensland, New South Wales, and Victoria as it continues to decarbonise operations and meet rising energy needs in its data and fulfilment centres.
Driving Growth
Amazon’s investment in data centres is expected to drive modernization of organizations in the region. This aligns well with the country’s goal of enhancing productivity and spurring economic growth through AI innovation. Several AWS partners and customers are set to benefit from the investment.
These benefits will be in the form of access to advanced AI and cloud tools in compliance with local regulatory and data residency requirements. Australia’s Department of Industry, Science, and Resources estimates that AI and automation will add about 600 billion Australian dollars to the country’s GDP each year by 2030.
“I am pleased to join Matt Garman to announce AWS’s investment of A$20bn over five years to further develop and expand its data centers in Sydney and Melbourne,” Australia Prime Minister Anthony Albanese said.
Amazon’s latest investment comes at a time when the company is launching the AWS AI Spring program in Australia. The program features a series of initiatives aimed at accelerating AI adoption across the country. Some of the initiatives include AWS AI Launchpad designed to support businesses to take up AI technologies and the AWS Generative AI Accelerator that targets early stage startups.
Deepening Partnership
The presence of AWS in Australia dates back to 2012 when the cloud computing giant launched its Asia Pacific regional office in Sydney. In 2023, the company expanded to Melbourne and introduced Local Zones in Perth. After that, Amazon launched its fully managed generative AI service called Bedrock in 2024.
Later that year, the tech giant partnered with the Australian Government to create the ‘Top Secret’ AWS Cloud for the country’s national security. The latest investment deepens this ongoing partnership for the tech giant.
“This planned investment deepens our long-term commitment to supporting the growth and development of Australian organisations of all sizes and helping them harness the enormous opportunity that generative AI offers,” Garman added.
Early this month, Amazon unveiled a $10 billion investment in the US state of North Carolina as part of its data center infrastructure expansion strategy to support advancements in cloud computing and AI. “Amazon’s $10 billion investment in North Carolina underscores our commitment to driving innovation and advancing the future of cloud computing and AI technologies. We look forward to partnering with state and local leaders, local suppliers, and educational institutions to nurture the next generation of talent,” David Zapolsky, Chief Global Affairs and Legal Officer at Amazon said.
