Amazon Web Services (AWS) is set to play a pivotal role in Japan’s artificial intelligence (AI) and cloud strategy, unveiling plans to invest a staggering 2.26 trillion yen ($15.3 billion) by 2027. The focus of this significant investment is the expansion of AWS’s cloud infrastructure in Osaka, aimed at accelerating the development and widespread adoption of AI and machine learning. Additionally, this move aligns with supporting enterprises in their digital transformation (DX) endeavors.
Having established its presence in Japan with the launch of its first cloud region in Tokyo in 2011, AWS has steadily expanded its footprint, adding another cloud region in Osaka. The company currently operates four data centers in Tokyo and three in Osaka. AWS claims to have invested 1.51 trillion yen in its Japanese business between 2011 and 2021, and the proposed spending in Osaka will bring the total investment to 3.77 trillion yen by 2027.
Tadao Nagasaki, President of AWS Japan, expressed the company’s commitment to providing secure and scalable cloud infrastructure to facilitate the digital transformation of Japanese businesses, stating, “Our investment will accelerate the DX of even more customers in the public and private sectors and will enable AI and machine learning.”
AWS anticipates substantial economic impacts from its investments, estimating a contribution of 5.57 trillion yen to Japan’s GDP and the creation or support of up to 30,500 jobs.
In the broader context of the Asia-Pacific including Japan (APJ) region, IDC predicts a 20% growth in cloud-based spending by digital-native businesses, reaching $26.5 billion this year. AWS, Alibaba, and Microsoft are identified as the top three cloud providers in the region. This growth is attributed to the increasing demand for generative AI (genAI) and cloud platforms to enhance competitiveness, innovation, and efficiency.
Japan’s government, recognizing the importance of strengthening the nation’s digital industrial infrastructure, particularly in areas like data centers, digital talent development, AI, and renewable energy, welcomes long-term investments. AWS’s ambitious cloud investment plan appears poised to align with multiple objectives outlined in Japan’s 2022 AI strategy, including attracting and developing an AI talent pool and contributing to international research.
As AWS intensifies its focus on Japan, the investment is expected to catalyze advancements in AI, machine learning, and digital transformation, aligning with both corporate and government objectives in the rapidly evolving technological landscape.
