Amazon Invests $7.2 Bn In Israel, Launches AWS Data Centres
Amazon on Tuesday said it will invest USD 7.2 billion in Israel, spanning over the next fourteen years until 2037.
The company aims to bolster its cloud computing arm, Amazon Web Services (AWS), in the region while also bolstering Israel's digital infrastructure.
The focal point of the investment is the introduction of AWS data centres within Israel's borders. This development will allow the Israeli government to shift significant workloads to the cloud, streamlining operations, and accelerating digital transformation within the public sector.
Commenting on the establishment of the AWS region in Israel, Yali Rothenberg, the accountant general of Israel, expressed optimism about the potential benefits. "The establishment of the Region will enable us to migrate substantial governmental workloads to the cloud, and we are confident that it will help us accelerate digital transformation in the public sector," said Rothenberg.
Amazon Web Services has a strong foothold in the cloud computing market, catering to prominent global companies like Netflix, General Electric, and Sony. The platform offers a wide range of services, including storage, networking, and remote security, making it a preferred choice for businesses worldwide.
With the latest expansion into Israel, AWS will now be available in 32 geographic regions worldwide, reinforcing its global presence as a leading cloud service provider.
Beyond the technology implications, the investment is expected to have a significant impact on Israel's economy. Amazon estimates that its commitment will contribute approximately USD 13.9 billion to Israel's gross domestic product (GDP). This infusion of funds is likely to spur innovation, create job opportunities, and boost economic growth in the country.
This announcement follows Amazon's recent pledge to invest USD 26 billion in India by 2030, with an additional USD 6.5 billion in planned investments. The company's CEO, Andy Jassy, had made the commitment in June this year during a meeting with Indian Prime Minister Narendra Modi in the United States, reaffirming Amazon's dedication to expanding its operations globally.
