Amazon Web Services announced on Tuesday its plan to invest an additional 12 billion Singapore dollars (approximately $8.87 billion) over the next five years to enhance its cloud infrastructure and services in Singapore.
Priscilla Chong, the country manager of AWS Singapore, shared with CNBC’s “Street Signs Asia” that the investment would primarily focus on expanding the data center capabilities associated with the Asia-Pacific Singapore region.
Having established its first Asia-Pacific region in Singapore in 2010, AWS has been continuously reinforcing its commitment to the ASEAN region. Over the years, the tech giant has injected over SG$11 billion into Singapore’s cloud infrastructure and ecosystem.
During a summit on Tuesday, Chong emphasized AWS’s dedication to the ASEAN region, highlighting its efforts to foster digital skills across nations and provide secure and resilient infrastructure throughout the region. She mentioned that AWS has already trained over 400,000 individuals in cloud skills since 2017 and intends to further invest in upskilling initiatives to enhance productivity across Singapore.
The rise of artificial intelligence (AI) has fueled a surge in demand for cloud computing services and data centers. Cloud service providers like AWS are pivotal in advancing the digital economy ecosystem, offering organizations foundational digital infrastructure and easy access to resources like computing power, storage, and advanced technologies such as AI and generative AI.
Tan Kiat How, senior minister of state at Singapore’s Ministry of Communications and Information, acknowledged the critical role of AWS in bolstering the digital economy. He expressed confidence that AWS’s initiatives would facilitate broader adoption of cloud services and AI capabilities among Singaporean organizations, driving continued momentum in digitalization efforts.
However, Tan also noted a challenge in the shortage of tech professionals, both locally and globally, underscoring the need for concerted efforts to address this gap.
According to data from Synergy Research Group, AWS maintained its position as the world’s largest cloud infrastructure provider in the first quarter, holding a 31% share of the global market. Microsoft Azure closely followed AWS in the second position.
The announcement from AWS comes shortly after Microsoft’s commitment to invest in AI and cloud-related initiatives across Southeast Asian countries, including Malaysia, Thailand, and Indonesia. AWS itself has been expanding its presence in the region, with plans to launch a region in Thailand and invest in Malaysia to strengthen its footprint in Southeast Asia.
