AWS invests $5B to build AI data centers in South Korea by 2031

Amazon Web Services will invest at least $5 billion in South Korea by 2031 to build new artificial intelligence data centers, marking one of the largest AI infrastructure commitments in Asia. The investment positions South Korea closer to its goal of becoming one of the world’s top three AI leaders while strengthening Amazon’s foothold in the rapidly expanding Asian AI market.

The big picture: This announcement came during the Asia-Pacific Economic Cooperation summit, where seven global firms pledged a total of $9 billion in investments over the next five years to South Korea.

• AWS CEO Matt Garman met with South Korean President Yoon Suk Yeol to formalize the commitment, which will focus on building data centers on the outskirts of Seoul.
• The investment is part of AWS’s broader $40 billion commitment across 14 non-U.S. APEC countries and economies through 2028.

Why this matters: South Korea is positioning itself as a major AI hub in Asia, attracting significant investments from leading technology companies.

• President Yoon emphasized that Amazon’s investment will “accelerate the growth of an ecosystem for the AI industry in South Korea.”
• The country already has one of the largest numbers of paying ChatGPT subscribers globally, second only to the United States, according to OpenAI.

Key details: This builds on Amazon’s existing commitments to South Korean AI infrastructure development.

• AWS previously announced a $4 billion investment plan in June as part of SK Group’s initiative to build the country’s biggest data center in Ulsan.
• The company has also announced similar investments across the region, including Japan, Australia, and Singapore.

Who else is involved: Other major AI companies are also making significant commitments to South Korea’s AI ambitions.

• OpenAI, the company behind ChatGPT, plans to establish joint ventures with Samsung and SK to build two data centers with an initial capacity of 20 megawatts, creating what officials call a “Korean-style Stargate.”
• OpenAI has signed initial deals to source memory chips for its data centers from Samsung Electronics and SK Hynix, two major South Korean technology companies.

What they’re saying: AWS leadership highlighted the broader economic benefits of their Asia-Pacific investments.

• “At AWS, we’ve invested and committed to investment of an additional $40 billion across 14 non-U.S. APEC countries and economies between now and 2028,” Garman said.
• “And, that $40 billion actually drives an additional $45 billion in U.S. GDP and downstream benefit, benefiting all of the APEC economy,” he added during a business event at the summit.