Amazon announced plans to invest more than $5 billion in South Korea by 2031, primarily to build artificial‑intelligence (AI) data centers. The commitment, disclosed by Matt Garman, head of Amazon Web Services (AWS), during a meeting with South Korean President Lee Jae‑myung, marks the country’s largest-ever foreign investment. The announcement was made on the sidelines of the Asia‑Pacific Economic Cooperation (APEC) summit in Gyeongju.
The investment will fund new AI data centers in the Incheon and Gyeonggi regions near Seoul, surpassing Amazon’s previous record of a $4 billion AI data center in Ulsan announced in June. According to President Lee’s office, the project will accelerate the development of South Korea’s AI ecosystem and support the government’s goal of becoming one of the world’s top three AI powerhouses.
South Korea is strategically positioned for such investments, hosting leading memory‑chip manufacturers Samsung Electronics and SK Hynix, which produce essential components for AI products and data centers. Amazon’s investment underscores the country’s potential as a hub for AI development and data‑center operations, highlighting the growing importance of AI infrastructure in the global technology landscape.
Collaborations like this are expected to play a pivotal role in enhancing South Korea’s AI capabilities, contributing to economic growth and fostering innovation in the technology sector. With a strong foundation in chip manufacturing now bolstered by Amazon’s funding, South Korea is poised to make significant strides in the AI sector and strengthen its position in the global AI market.
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