Amazon Web Services (AWS) is set to inject a minimum of $5 billion into South Korea's burgeoning artificial intelligence (AI) industry by 2031, focusing on the development of state-of-the-art data centers. This strategic move, unveiled by AWS CEO Matt Garman and South Korean President Lee Jae Myung at the APEC 2025 summit, underscores a growing commitment to enhancing AI infrastructure in the region. The investment is expected to bolster South Korea's aspirations to be a frontrunner in global AI innovation, while also generating substantial economic benefits, including an anticipated $45 billion increase in U.S. GDP and broader gains across the APEC economies.
During the Asia-Pacific Economic Cooperation (APEC) 2025 summit, AWS CEO Matt Garman officially announced the company's substantial financial commitment to South Korea's AI domain. This pledge, totaling at least $5 billion, is earmarked for the construction of advanced AI data centers, strategically situated on the outskirts of Seoul. Garman further elaborated on AWS's wider investment strategy, revealing plans to deploy an additional $40 billion across 14 non-U.S. APEC countries and economies by 2028. This expansive investment is projected to inject $45 billion into the U.S. GDP and create significant ripple effects throughout the APEC region.
South Korean President Lee Jae Myung lauded Amazon's investment, emphasizing its potential to catalyze the expansion of the nation's AI ecosystem. This aligns perfectly with South Korea's ambitious goal of establishing itself as one of the top three global leaders in artificial intelligence. Amazon is one of seven international corporations that have collectively committed a staggering $9 billion over the next five years, signaling a concerted effort to propel AI development forward.
The announcement from AWS arrives amidst a flurry of AI-related activities in South Korea. Earlier in June, Alibaba Group Holding's cloud division declared its intention to launch a second data center in South Korea, aiming to capitalize on the surging interest in AI. Alibaba has committed at least $53 billion over the next three years to advance its AI infrastructure initiatives. In October, a collaboration between OpenAI (supported by Microsoft and NVIDIA) and South Korean tech giants Samsung Electronics and SK Hynix was announced, focusing on the construction of a dedicated AI data center in the southwestern part of the country.
This significant investment by AWS also precedes Amazon's Q3 earnings report, which is being closely watched by analysts, especially in light of recent reports concerning AWS outages and job reductions. The company is anticipated to report third-quarter revenue of $177.72 billion. The overall investment landscape reflects a robust global drive towards AI development, with South Korea emerging as a key hub for these advancements, attracting considerable capital and technological expertise from leading international companies.