AWS Expands Global Reach and AI Capability with Data Centers and NVIDIA Partnership

Ticker BuzzFriday, May 30, 2025 5:00 pm ET
1min read

Amazon Web Services (AWS), a key division of Amazon, is actively strategizing to enhance its global data center presence while concurrently pursuing high-demand NVIDIA AI chips. Matt Garman, CEO of AWS, indicated that the company has recently expanded its infrastructure, establishing a new cluster of data centers in Mexico and advancing projects in Chile, New Zealand, and Saudi Arabia.

Amazon has projected substantial revenue growth from its AI services reaching billions annually, largely driven by customer requirements for on-demand AI solutions hosted by AWS. As the leading provider for computational prowess and data storage services, AWS continues to outperform competitors such as Microsoft’s Azure and Google Cloud, evidenced by its first-quarter revenue of $292.67 billion, marking a 17% increase year-over-year.

Despite the growth, AWS confronts intensifying competition with Microsoft and Google, which recorded higher revenue increases of 21% and 28%, respectively, in their corresponding cloud segments. AWS is also keen on bolstering its AI capabilities and, consequently, has forged partnerships with NVIDIA, acquiring the sought-after GB200 chips, which are currently being tested by AWS clients.

NVIDIA's GB200 AI server rack includes state-of-the-art components, featuring 36 Grace CPUs and 72 Blackwell GPUs interconnected through NVIDIA's NVLink system, underscoring the escalating demand in the AI technology space. Garman, formerly an engineering and sales executive at AWS, assumed the CEO role a year ago and has enthusiastically expressed openness to collaborative ventures, particularly with OpenAI’s models on AWS, despite their current reliance on Microsoft's infrastructure.

Furthermore, Garman encourages extensive cross-platform capabilities, advocating for seamless integration, irrespective of partnerships such as Anthropic. His perspective underlines AWS’s dedication to maintaining a versatile approach to bolster its AI market footprint while recognizing that AWS remains the primary deployment choice for many of its AI services.

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