AWS Invests $5B in South Korea Data Centers by 2031

SEOUL, South Korea - Amazon Web Services announced on Thursday that it will invest KRW 7 trillion (approximately US$5 billion) in South Korean data center infrastructure between 2025 and 2031.

The company stated that the investment would increase its total capital deployment in South Korea to more than KRW 12.6 trillion (approximately US$9 billion) by 2031.

AWS stated that it has invested more than KRW 5.6 trillion (approximately US$4 billion) in South Korean cloud infrastructure to date.

AWS said the investment represents the largest infrastructure commitment by a global cloud provider in South Korea.

The expenditure includes funding for a facility AWS is developing with SK Group in Ulsan.

SK Group will construct the facility, scheduled to begin operations in 2027, according to the companies. 

AWS will provide services to South Korean customers through the site, the companies said.

Jaime Vallés, AWS Vice President for Asia-Pacific and Japan, stated that the investment is aimed at supporting the digital transformation of Korean companies and contributing to South Korea's development as an AI hub.

Kim Jung-kwan, South Korea's Minister of Trade, Industry, and Energy, stated that the government would support companies in expanding their AI infrastructure investment and business activities within the country.

AWS said it has provided cloud technology training to more than 300,000 people in South Korea since 2017.

The company cited three client implementations. 

According to AWS, LG Electronics reduced data analysis time from three days to 30 minutes.

According to AWS, Samsung C&T reduced review time by 70 percent and achieved annual cost savings of KRW 5 billion.

According to AWS, CJ Onstyle increased response rates threefold with a customer inquiry system.

Ham Ki-ho, chief executive of AWS Korea, said the infrastructure is expected to enable domestic companies to access AI technology while maintaining data sovereignty.