Cloud computing giant Amazon Web Services (AWS) is shaking up Japan’s digital landscape with a massive investment of 2.26 trillion yen (approximately £11.84 billion). This bold move, announced in January 2024, is set to bolster Japan’s existing cloud infrastructure in Tokyo and Osaka by 2027. AWS’s commitment doesn’t stop there – this latest investment brings their total outlay in Japan’s cloud infrastructure to a staggering 3.77 trillion yen (£19.75 billion).
The impact of AWS’s spending is far-reaching. According to a new AWS Economic Impact Study (EIS) for Japan, this investment will add an estimated 5.57 trillion yen (£29.19 billion) to the country’s Gross Domestic Product (GDP). Furthermore, it’s expected to create an average of 30,500 full-time equivalent (FTE) jobs annually within local businesses in Japan.
A Legacy of Digital Transformation
This story holds great significance for anyone interested in technology and economic development. The impact AWS has had on Japan’s digital landscape is undeniable This isn’t simply about data centres and servers – it’s about accelerating innovation, driving economic growth, and shaping the nation’s technological future. AWS first opened its doors in Japan back in 2009, establishing the AWS Asia Pacific (Tokyo) Region in 2011. The AWS Asia Pacific (Osaka) Region followed in 2021, fueled by the government’s push for digital transformation (“DX”).
AWS has invested heavily in Japan, pouring 1.51 trillion yen (£7.91 billion) into the development, connection, operation, and maintenance of its data centres between 2011 and 2022. This investment has already had a substantial impact, contributing an estimated 1.46 trillion yen (£7.65 billion) to Japan’s GDP and supporting over 7,100 FTE jobs. These roles encompass a wide range of fields, including construction, facility maintenance, engineering, and telecommunications.
The Future is Generative AI
One of the most exciting aspects of AWS’s expansion is its focus on generative AI. AWS is working tirelessly to help businesses across Japan harness this groundbreaking technology. Amazon Bedrock, a fully managed service for generative AI applications, was launched in the AWS Asia Pacific (Tokyo) region in October 2023. Customers can now run and store their AI applications locally, bringing workloads closer to end-users.
The AWS LLM Development Support Program is another key initiative, providing technical and financial support to organizations developing new language models. AWS is also investing heavily in free and low-cost generative AI training courses, demonstrating a deep commitment to making this technology accessible to everyone in Japan.
Sustainability and Growth Go Hand-in-Hand
AWS’s expansion isn’t just about technology; it’s about sustainability too. Amazon is deeply committed to becoming a net-zero carbon business by 2040. In Japan, the company has already invested in multiple offsite renewable energy projects. These projects are not only powering AWS’ operations with clean energy but also contributing to Japan’s broader sustainability goals.
The economic benefits of cloud computing are undeniable. Research suggests that cloud data centres in Japan are five times more energy-efficient than traditional on-premises setups. By encouraging the shift to the cloud, AWS is playing a vital role in reducing the nation’s carbon footprint.
The Road Ahead
Japan’s partnership with AWS is a model of successful collaboration between business and government to power a digital future. With its relentless focus on innovation, investment in local communities, and commitment to sustainability, AWS is set to transform Japan’s economy and society for years to come.
FAQ
AWS is investing a total of 3.77 trillion yen (£19.75 billion) in Japan’s cloud infrastructure.
The AWS Economic Impact Study (EIS) projects a boost of 5.57 trillion yen (£29.19 billion) to Japan’s GDP, and the creation of approximately 30,500 full-time jobs annually.
Generative AI refers to AI models that can create new content like text, images, or code. It has the potential to revolutionize industries from marketing to healthcare. AWS is investing heavily in generative AI to help Japanese businesses adopt this powerful technology.
AWS opened its doors in Japan in 2009 and established the AWS Asia Pacific (Tokyo) Region in 2011.
AWS’s expansion aligns with the Japanese government’s promotion of digital transformation (DX) to boost the nation’s economy and global competitiveness.
Amazon Bedrock is a fully managed service that allows businesses in Japan to run and store generative AI applications locally.
AWS supports generative AI adoption through the LLM Development Support Program, providing resources to those building new language models, and by offering affordable generative AI training courses.
