Amazon increases investment in South Korean AI infrastructure with an additional $5 billion in data centers
Amazon will invest an additional $5 billion in its data centers in South Korea to enhance its artificial intelligence infrastructure. This funding will be used to build multiple data centers by 2031. This investment follows Amazon's $4 billion investment plan in collaboration with SK Group. Amazon's cloud business unit AWS is a leader in AI infrastructure development but faces fierce competition from companies like Google and Oracle
According to Zhitong Finance APP, Amazon (AMZN.US) has allocated another $5 billion for investment in building data centers in South Korea, significantly increasing its spending on constructing artificial intelligence infrastructure in the country. After a meeting between South Korean President Yoon Suk-yeol and AWS CEO Matt Garman, a statement was released indicating that the funds will be used to build multiple data centers by 2031. Previously, Amazon had announced an investment plan of over $4 billion in collaboration with SK Group in June.
Amazon's cloud business division is one of the largest spenders in the current booming infrastructure construction wave of the AI era, competing with Meta (META.US) and Microsoft (MSFT.US) to build large data centers that are crucial for all AI services. Most companies are particularly investing billions of dollars in data center construction in Asia, where there is a rapidly growing trend in mobile devices and technology applications.
AWS, which has long held a leading position in the cloud services sector, is currently facing fierce competition from strong rivals such as Google under Alphabet (GOOGL.US) and Oracle (ORCL.US). The company is making business adjustments and laying off employees to accelerate business development while also keeping pace with its largest competitors in terms of investment
