Amazon Web Services (AWS) announced a major investment plan to build new artificial intelligence (AI) data centres in South Korea, committing $5 billion by 2031. This move aligns with Seoul’s ambition to position itself as a leading AI hub in Asia. The announcement was made during a meeting between AWS CEO Matt Garman and South Korean President Lee Jae Myung, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju.
In addition to AWS, six other global firms attending the meeting pledged a total of $9 billion in investments over the next five years, signalling a significant influx of foreign capital aimed at boosting South Korea’s technological ecosystem.
AWS’s investment is expected to boost South Korea’s AI sector, supporting its goal to rank among the top three global AI leaders. President Lee expressed optimism, emphasising AWS’s role in technological growth. Garman noted AWS has pledged an extra $40 billion in 14 non-U.S. APEC countries by 2028, potentially adding $45 billion to U.S. GDP and benefiting the APEC region.
New data centres will be built on Seoul’s outskirts, complementing existing infrastructure. In June, AWS announced a $4 billion investment in South Korea, mainly supporting SK Group’s effort to build South Korea’s largest data centre in Ulsan. AWS’s investments also include Japan, Australia, and Singapore.
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South Korea’s government revealed plans for OpenAI to partner with Samsung and SK on two data centres, called a Korean-style Stargate, with an initial 20-megawatt capacity. South Korea is a key market for ChatGPT, ranking second after the U.S. in paying subscribers. OpenAI also plans to source memory chips from Samsung and SK Hynix, further linking AI progress with South Korea’s tech industry.
