AWS Commits $5 Billion Investment to Build AI Data Centers in South Korea by 2031

Major Investment Announcement at APEC Summit

Amazon Web Services (AWS) has announced a significant $5 billion investment commitment to establish new artificial intelligence data centers in South Korea by 2031. The announcement was made during a high-profile meeting between AWS CEO Matt Garman and South Korean President Lee Jae Myung at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju 1

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Building on Previous Commitments

This latest investment builds upon AWS's previous commitment to South Korea, including a $4 billion investment plan announced in June 2024 in partnership with local conglomerate SK Group to build the country's largest data center in Ulsan 3

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. The new data centers will be strategically located in Incheon and Gyeonggi Province, positioning them on the outskirts of Seoul to serve the greater metropolitan area 2

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Broader Regional Strategy

The South Korea investment is part of AWS's comprehensive expansion across the Asia-Pacific region. Garman revealed that AWS has committed to investing an additional $40 billion across 14 non-U.S. APEC countries and economies between now and 2028. This substantial investment is projected to generate an additional $45 billion in U.S. GDP and create downstream benefits for the entire APEC economy 1

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Supporting South Korea's AI Ambitions

President Lee emphasized that AWS's investment will accelerate the growth of South Korea's AI industry ecosystem, aligning with the nation's ambitious goal to become one of the world's top three AI leaders. The investment is expected to enhance domestic data-processing capacity and accelerate growth in cloud computing and generative AI services 4

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Multi-Company Investment Initiative

AWS was among seven global companies that participated in a collective investment commitment totaling $9 billion over the next five years. The other participating companies included Renault, Amkor Technology, Corning, Air Liquide, Siemens Healthineers, and Umicore, all targeting key strategic sectors such as semiconductors, secondary batteries, future mobility, and biotechnology 3

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Competitive Landscape

The announcement comes amid intensifying competition in South Korea's AI infrastructure market. Earlier this year, Alibaba Group's cloud unit announced plans for its second data center in South Korea, committing at least $53 billion over three years toward AI infrastructure. Additionally, OpenAI, backed by Microsoft and NVIDIA, has partnered with Samsung Electronics and SK Hynix to construct a dedicated AI data center in southwest Korea 2

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