Amazon’s cloud computing arm, Amazon Web Services (“AWS”), recently announced plans to establish an infrastructure region in the Kingdom of Saudi Arabia by 2026. This strategic move, comprising three availability zones, aims to cater to the escalating demand for cloud services in Saudi Arabia and the broader Middle East region.
The new region will facilitate AWS in providing low latency, granting access to its broad spectrum of cloud services, encompassing AI, machine learning, data analytics, and the Internet of Things for its clientele. Additionally, this initiative will enable customers to effortlessly handle crucial workloads and securely store data within Saudi Arabia while serving end users through data centers within the country.
Furthermore, this development underscores AWS’s commitment to the Middle East, with Amazon intending to invest over $5.3 billion in Saudi Arabia, signalling a significant bet on the region’s growth potential.
Expanding Asia-Pacific (APAC) Presence
Alongside the Saudi Arabia expansion, AWS is also planning to establish an infrastructure region in Malaysia, aiming to invest around $6 billion by 2037 to bolster the country’s digital infrastructure and drive job creation.
Moreover, AWS is set to inject 2.26 trillion yen ($15.24 billion) in Japan by 2027, enhancing its cloud infrastructure in key cities like Tokyo and Osaka.
Additionally, AWS’s recent launch of an infrastructure region in Melbourne, Australia, and its plans for regions in Israel, Thailand, and New Zealand signify the company’s commitment to tapping into the growing potential of the APAC region.
These ventures are poised to position Amazon favorably in the emergent APAC cloud technology market, projected to grow at a CAGR of 15.1% between 2023 and 2030, as per a Research and Markets report.
Competitive Scenario
Amazon’s aggressive expansion in APAC mirrors similar efforts by tech giants like Microsoft, Alphabet, and Alibaba, who are also intensifying their presence in the region’s cloud market.
Microsoft’s Azure is preparing to launch data centers in five APAC countries, including India, Indonesia, Malaysia, New Zealand, and Taiwan, to cater to the region’s increasing cloud service demands.
Alphabet’s Google has also made significant strides in the region, establishing data centers in Japan, Singapore, India, and Australia, to enhance its cloud services portfolio.
Similarly, Alibaba is ramping up investments in APAC, with data centers in multiple countries, emphasizing their commitment to the region’s cloud market expansion.
