Amazon’s cloud computing arm, Amazon Web Services (AWS), recently announced its strategic move to establish an infrastructure region in Saudi Arabia by 2026. This region, anticipated to consist of three availability zones, aims to meet the escalating demand for cloud services in Saudi Arabia and the wider Middle East region.
The introduction of this region is set to enhance AWS’s ability to provide low-latency services and grant access to its diverse cloud service offerings, including advanced technologies like AI, machine learning, data analytics, and IoT to its clientele.
Moreover, customers will benefit from the seamless operation of critical workloads and secure content storage within Saudi Arabia, catering efficiently to end users through the region’s data centers. The move is expected to draw interest from a broad spectrum of clients, ranging from startups and enterprises to government institutions.
Amazon’s significant investment of over $5.3 billion in Saudi Arabia underlines its unwavering commitment to the region and underscores the company’s long-term growth strategy in the Middle East.
Amazon Forges Deeper Roots in APAC
Alongside the Saudi Arabia expansion project, AWS is set to establish a robust presence in Malaysia with a projected investment of $6 billion by 2037, aimed at fostering economic growth and job creation within the nation.
The company also plans to infuse 2.26 trillion yen ($15.24 billion) into Japan by 2027, focusing on enhancing its cloud infrastructure specifically in Tokyo and Osaka. The successful launch of the AWS Asia Pacific (Melbourne) region in Australia last year has bolstered AWS’s position in the APAC region.
Furthermore, AWS’s initiative to introduce an infrastructure region in Israel and its forthcoming expansions in Thailand and New Zealand are indicative of the company’s ambition to capitalize on the burgeoning cloud market in APAC, a region teeming with technological opportunities.
Competing Amidst Technological Renaissance
As Amazon extends its footprint in the APAC region, tech giants like Microsoft, Alphabet, and Alibaba are intensifying their efforts to gain a stronghold in the burgeoning market.
Microsoft Azures’ forthcoming data centers in APAC, coupled with Alphabet’s strategic data center deployments, indicate a fierce competition for cloud dominance in the region. Alibaba’s aggressive investments in cloud infrastructure across APAC underscore the tech conglomerate’s commitment to fortifying its position in the lucrative market.
