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Amazon Web Services to invest $15 billion to expand cloud computing in Japan

AWS, a unit of Amazon.com, will allocate funds to enhance facilities in Tokyo and Osaka to meet the increasing demand from customers

Amazon Web Services (AWS) announced its plan to invest ¥2.26 trillion ($15.24 billion) in Japan by 2027. This investment aims to expand the cloud computing infrastructure that serves as a crucial foundation for artificial intelligence (AI) services.

AWS, a unit of Amazon.com, will allocate funds to enhance facilities in Tokyo and Osaka to meet the increasing demand from customers, according to a company statement. This investment follows a previous expenditure of ¥1.51 trillion from 2011 to 2022, dedicated to building up cloud capacity in Japan. AWS highlighted its provision of generative AI services to notable Japanese corporate clients, including Asahi Group, Marubeni, and Nomura Holdings.

The significance of this investment aligns with Japan’s broader efforts, led by the government and the corporate sector, to accelerate progress in AI development. Prime Minister Fumio Kishida has engaged in discussions with key figures from influential entities in the AI domain, such as OpenAI (the creator of ChatGPT) and advanced chipmaker Nvidia, over the past year. These discussions have encompassed topics such as AI regulation and infrastructure.