AWS also invests 12 trillion won in Singapore... Big Tech's focus shifts to Southeast Asia

Cloud and AI Investment Forecast
Investment Flood in Thailand and Malaysia Too

[Image source=Reuters Yonhap News]

Amazon Web Services (AWS), the world's number one cloud provider, is investing approximately 12 trillion won in Singapore. The attention of major U.S. tech giants, known as 'Big Tech,' is focused on the growth potential of the Southeast Asian region.

According to major foreign media including Bloomberg on the 7th (local time), AWS announced that it will invest 12 billion Singapore dollars (12.053 trillion won) over the next four years to expand its cloud computing infrastructure in Singapore. This amount is more than double the investment made since AWS established its regional computing headquarters in Singapore in 2010 until last year. AWS also plans to collaborate with the Singapore government and companies to accelerate the adoption of artificial intelligence (AI).

This investment is interpreted as a move considering the growth potential of the Southeast Asian region. Amazon's first-quarter net profit reached $10.4 billion, more than tripling compared to the same period last year, driven by cloud, advertising, and retail businesses. With a population of over 650 million and expanding cloud adoption, AWS is taking a more aggressive approach to this market. Additionally, this is a strategic move to diversify supply chains and reduce geopolitical risks by decreasing reliance on China amid tensions between the U.S. and China.

Not only Singapore but other Southeast Asian countries are actively attracting investments. Previously, AWS announced plans to invest $5 billion (about 6.8 trillion won) in Thailand and $6 billion in Malaysia, respectively.

Satya Nadella, CEO of Microsoft (MS), also announced an investment of $1.7 billion over the next four years for data center construction and other projects in Indonesia. Malaysian authorities revealed that Google is expected to announce investments in the country soon. Apple CEO Tim Cook visited Vietnam, Indonesia, and Singapore consecutively last month.