AWS makes US$40 billion play for APAC AI market

AWS CEO Matt Garman this week announced that Amazon is significantly expanding its cloud infrastructure investments in the Asia Pacific (APAC) region with plans to invest more than US$40 billion in 14 APEC economies by 2028.

The strategy aims in large part to support the large-scale deployment of AI agents at companies throughout the region.

AWS CEO Matt Garman emphasized in his keynote speech at the Asia-Pacific Economic Cooperation (APEC) CEO Summit held this week in Gyeongju, South Korea, that AI agents are the core of next-generation innovation that will fundamentally change the way businesses operate.

At the event, Garman explained that generative AI is driving a new wave of technological innovation, and AI agents are becoming a key driver in translating this innovation into tangible results. He also explained that the introduction of AI agents can go beyond the efficiency improvements of existing generative AI and more than double the productivity of overall corporate operations.

AWS announced in a press release that Japan’s Mitsubishi UFJ Financial Group (MUFG) has introduced AWS-based AI agents to automate financial analysis and proposal writing processes, expanding the number of potential clients tenfold and increasing deal completion rates by 30 per cent. Citing this case, AWS explained that the effectiveness of AI agents is already evident across various industries, including finance and telecommunications.

Meanwhile, AWS announced plans to invest an additional US$5 billion in expanding its data centre infrastructure to support AI and cloud computing technologies in Korea from 2025 to 2031. AWS has invested over US$4 billion in Korea’s cloud infrastructure to date, and Amazon’s total investment in Korea is expected to exceed US$9 billion by 2031. 

“This new investment of KRW 7 trillion further solidifies our long-term commitment to supporting the digital transformation of Korean companies of all sizes and contributing to Korea’s rise as a global AI powerhouse,” said Jaime Valles, vice president and general manager of AWS Asia Pacific and Japan (APJ). “AWS is investing in Korea’s technological future by expanding our world-class data center infrastructure. We are excited to help Korean companies quickly innovate with the most advanced computing power and specialized AI tools and capitalize on the massive opportunities presented by generative AI.”

Korean Minister of Trade, Industry, and Energy Kim Jung-kwan said, “AWS’s large-scale investment in AI infrastructure will greatly contribute to Korea’s leap forward as a global AI powerhouse.”

He added: “AI transformation (AX) is the only solution to overcome the crises our industry is facing, such as stagnant productivity and the spread of global protectionism. The AI ​​infrastructure that AWS will build is even more significant in that it will accelerate AX across the industry. The government will actively support domestic and foreign companies to actively invest and engage in business activities to expand AI infrastructure and spread AX.”

This new investment includes investment by AWS in the Ulsan AI Zone, a collaboration between AWS and SK Group to strengthen Korea’s national AI infrastructure. SK Group will be responsible for construction of this AI-specific facility, scheduled to begin operations in 2027, while AWS will provide Korean customers with access to its leading AI and cloud capabilities.