Amazon Web Services (AWS), the cloud computing division of the tech behemoth, is set to pour billions of U.S. dollars into cloud computing initiatives in Taiwan over the next 15 years.
The company recently announced the launch of a Taiwan infrastructure region by early 2025. This initiative aims to cater to customers who prefer to store their data within the country. Besides, this move follows AWS’s commitment to invest an additional $9 billion in Singapore over the next five years. AWS intends to bolster its cloud infrastructure and services throughout the nation with this investment.
AWS has been actively investing billions in the Asia-Pacific region, with Google recently pledging $2 billion to Malaysia for constructing its first data centre and cloud region in the country. Meanwhile, Microsoft is focusing on AI and cloud investments in various Southeast Asian countries like Malaysia, Thailand, and Indonesia as it intensifies its presence in the region.
In Q1 of this year, AWS secured a significant market share of 31% in the cloud infrastructure services market. This achievement highlights the growing importance of Asia in the global tech arena. For this reason, analysts foresee a promising future for Amazon. They foresee an accelerated sales cycle and a notable shift in fiscal budgets towards infrastructure spending. This indicates a faster transition to AWS. This investment in Taiwan further cements Amazon’s dominance in the cloud computing sector.
Nevertheless, AWS’s strategic move comes amidst escalating geopolitical tensions. The Taiwan-China conflict poses a ‘common risk’ for tech companies, including Amazon. Geopolitical events in China could disrupt access to vital chip industries, thereby highlighting this risk.
Despite these challenges, Amazon reported robust first-quarter earnings, including a 13% year-over-year surge in net sales, totaling $143.3 billion.
