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Amazon invests $4.4 billion in New Zealand's cloud infrastructure, creating 1,000 jobs and adding $6.33 billion to the economy.
ByAinvest
Tuesday, Sep 2, 2025 5:29 am ET1min read
Amazon is investing $4.4 billion in a new cloud computing infrastructure in New Zealand, transforming the country into a regional hub for Amazon Web Services. The project is expected to generate 1,000 jobs and add $6.33 billion to the economy. This investment follows Amazon's commitment of over $50 billion to strengthen digital infrastructure across the Asia-Pacific region.
Amazon.com Inc. (AMZN) has announced a significant investment of NZ$7.5 billion ($4.4 billion) in expanding its cloud computing infrastructure in New Zealand. This move will transform the country into a key regional hub for Amazon Web Services (AWS), the company's cloud computing division [1].The investment, announced on Monday, aims to meet the growing demand for cloud services across New Zealand. The new AWS Region will enable local customers, such as Xero and Kiwibank, to run artificial intelligence workloads, manage data, and provide digital services with greater efficiency [1].
The project is expected to generate over 1,000 jobs and add around NZ$10.8 billion ($6.33 billion) to New Zealand's economy. The data centers will be powered by renewable energy supplied by the country's largest wind farm, situated about 150 kilometers north of Wellington [1].
This investment in New Zealand is part of Amazon's broader strategy to strengthen digital infrastructure across the Asia-Pacific region. The company has committed over $50 billion to similar initiatives in Australia, Japan, Singapore, Malaysia, and Thailand [1].
The investment follows Amazon's previous announcements of $13 billion for data center expansion in Australia and $10 billion in North Carolina to support AI and cloud computing technologies [1].
While Amazon's stock dropped after the second-quarter earnings, the slowdown in AWS was attributed to power-related capacity constraints, not weak demand. The company reported a record $195 billion backlog, highlighting strong demand that exceeds current capacity [2].
Amazon's investment in New Zealand is a strategic move to enhance its cloud services offerings and support the digital transformation of organizations across the Asia-Pacific region.
References:
[1] https://www.benzinga.com/markets/tech/25/09/47442879/amazon-pushes-50-billion-asia-pacific-digital-growth-strategy-further-with-4-4-billion-aws-investment-in-new-zealand
[2] https://www.gurufocus.com/news/3088905/amazon-amzn-plans-44-billion-data-center-investment-in-new-zealand
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