Amazon.com Inc’s cloud computing service unit, Amazon Web Services Inc., revealed on Friday its ambitious plan to invest approximately 2 trillion yen in Japan by 2027. The substantial investment aims to fortify the cloud infrastructure in response to the escalating demand fueled by the burgeoning generative artificial intelligence (AI) boom.
The earmarked funds will be directed towards expanding the capabilities of Amazon Web Services’ two existing data centres in Japan, strategically located in Tokyo and Osaka. This substantial financial commitment follows the 1.51 trillion yen that Amazon had previously invested in Japan between 2011 and 2022, underscoring the company’s dedication to enhancing its cloud computing presence in the region.
The decision to bolster cloud infrastructure comes at a time when generative AI is gaining significant traction among Japanese companies. The widespread popularity of ChatGPT, an AI chatbot developed by U.S.-based OpenAI, has catalyzed momentum in the adoption of generative AI technologies.
Several notable Japanese tech firms have entered the generative AI arena, with NEC Corp introducing a generative AI platform for corporate customers in July of the previous year. Additionally, Nippon Telegraph and Telephone Corp announced its plans to launch a business-oriented generative AI platform in March, signalling a broader industry trend toward AI innovation.
Amazon, too, has been actively participating in the AI landscape. The company launched Amazon Q, an AI service tailored for corporate clients, capable of summarizing texts and providing business advice by leveraging internal data. The move aligns with Amazon’s broader strategy to tap into the evolving landscape of AI applications for business and corporate solutions.
The significant investment in Japan underscores Amazon’s commitment to fortify its cloud infrastructure capabilities, anticipating sustained growth in demand for cloud services, particularly in the context of the transformative impact of generative AI technologies.