AWS’s expansion plan in Japan aims to support 30,500 jobs annually, driving digital and green transformation.
Amazon Web Services (AWS) has revealed plans to invest 2.26 trillion yen to expand its cloud infrastructure in Tokyo and Osaka, Japan, by 2027. This move aims to cater to the increasing demand for cloud services in the country.
According to the AWS Economic Impact Study (EIS) for Japan, this investment is projected to contribute 5.57 trillion yen to Japan’s gross domestic product (GDP) and generate an average of 30,500 full-time equivalent (FTE) jobs annually within local businesses. This investment follows AWS’s previous expenditure of 1.51 trillion yen in Japan from 2011 to 2022, bringing its total planned investment in the country’s cloud infrastructure to about 3.77 trillion yen by 2027.
AWS operates two regions in Japan, serving hundreds of thousands of customers to facilitate digital transformation (DX). The company established its first office in Japan in 2009, launching the AWS Asia Pacific (Tokyo) Region in 2011 and the AWS Asia Pacific (Osaka) Region in 2021. The investments made between 2011 and 2022 have contributed 1.46 trillion yen to Japan’s GDP and supported over 7,100 FTE jobs across sectors like construction, facility maintenance, engineering and telecommunications.
Takuya Hirai, former digital minister and current chair of the headquarters for the promotion of a digital society, the Liberal Democratic Party, praised AWS’s investments for enhancing Japan’s digital infrastructure and industrial competitiveness. “The development of digital infrastructure in Japan is key to strengthening the country’s industrial competitiveness, and data centers play an important role to this end. It promotes the use of important technologies such as AI and improves the capabilities of research and development in Japan,” he said.
Tadao Nagasaki, President of AWS in Japan, echoed the sentiment, emphasizing AWS’s dedication to equipping Japanese customers with advanced technology for digital solutions. “Our investment into cloud infrastructure generates a ripple effect across the Japanese industries including the public and government sector. It will help more Japanese organizations with the ability to access and adopt new, emerging and transformational digital technologies such as artificial intelligence and machine learning. We are committed to and excited about the future of Japan’s digital economy.”
AWS collaborates with a robust local and international partner community through the AWS Partner Network, which spans 47 prefectures in Japan and includes top AWS Premier Tier Services Partners like NEC, Fujitsu and NTT DATA.
Fostering generative AI innovation in Japan
AWS’s investment will continue to bolster organizations across various sectors in Japan, enabling them to enhance national productivity and transform customer experiences. Notably, AWS has made generative AI offerings available, such as Amazon Bedrock, to support productivity gains and drive business growth. AWS is also fostering the development of diverse, industry-specific large language models (LLMs) through the AWS LLM Development Support Program, providing technical mentoring and investing US$6 million in AWS credits in selected organizations.
In June 2023, AWS launched the Generative AI Innovation Center, investing US$100 million to connect machine learning and AI experts with customers and partners globally. This initiative supports Japanese companies like Asahi Group Japan in driving product innovation and operational efficiency using generative AI.
Digital skills and sustainability impact
AWS’s investment is expected to create a ripple effect on the Japanese cloud community, accelerating productivity gains, promoting digital transformation, upskilling the workforce and contributing to renewable energy projects. AWS has already provided training to over 600,000 individuals in Japan since 2017, demonstrating its commitment to education and skills development.
Amazon’s broader commitment to sustainability, including reaching net-zero carbon emissions by 2040 and investing in renewable energy projects in Japan, underscores its dedication to environmental stewardship. AWS’s infrastructure, renowned for its energy efficiency, offers a sustainable alternative to on-premises data centers, significantly reducing carbon emissions and supporting businesses in achieving their sustainability goals.
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