Amazon Web Services (AWS), a division of the U.S. tech giant Amazon, is set to establish a new infrastructure region in Taiwan by early 2025. This move is part of the company’s broader strategy to cater to the surging demand for cloud services across the Asia-Pacific region.
Prasad Kalyanaraman, Vice President of Infrastructure Services at AWS, highlighted the significance of the expansion during the announcement. “The new AWS region in Taiwan will empower organizations to leverage advanced AWS technologies like compute, storage, databases, analytics, machine learning, and artificial intelligence,” Kalyanaraman stated. This development underscores AWS’s commitment to facilitating technological advancement and innovation in the region.
An AWS region comprises a cluster of data centers located within a specific geographical area. The upcoming Taiwan region will consist of three availability zones at launch. These zones are isolated and geographically separate locations within the region, each possessing one or more data centers equipped with independent power, cooling, and physical security systems. This design ensures that services remain uninterrupted and secure, a critical factor for many businesses reliant on cloud infrastructure.
The addition of the Taiwan region will augment AWS’s global network, which currently boasts 105 availability zones across 33 geographic regions. This expansion not only enhances AWS’s service delivery capabilities but also positions it strategically within a vibrant economic corridor.
The establishment of the new AWS region in Taiwan is poised to have a substantial impact on various sectors including education, entertainment, financial services, and more. Below are key benefits that the new region will offer:
- Enhanced Performance: Local data centers will reduce latency for applications, providing faster response times for end-users in Taiwan.
- Compliance and Data Sovereignty: Companies will have the ability to store data within Taiwan, aligning with local data protection regulations and requirements.
- Innovation and Growth: Access to AWS’s cutting-edge technologies will enable businesses to innovate and scale new applications with greater efficiency.
AWS’s expansion into Taiwan is not just a technological upgrade; it represents a significant economic commitment. The company has announced plans to invest billions of dollars in Taiwan over the next 15 years. This investment will likely spur job creation, boost the local economy, and foster a tech-friendly environment that could attract other major players in the industry.
The decision to expand in Taiwan follows a series of similar investments across the Asia-Pacific region. Just last month, AWS committed an additional $9 billion to Singapore to enhance its cloud infrastructure and services over the next five years. Additionally, AWS has planned substantial investments in neighboring countries:
- Malaysia: A commitment of at least $6 billion by 2037 for a new region.
- Thailand: A planned investment of $5 billion over 15 years for a new region launched in October 2022.
- Indonesia: Opened a region in Jakarta in December 2021.
These investments underscore the strategic importance of the Asia-Pacific region to AWS’s global operations, which continue to show robust growth and market leadership.
The expansion of AWS into Taiwan places it in direct competition with other tech giants like Microsoft and Google, who have also been aggressively investing in the Asia-Pacific region. According to recent data from Synergy Research Group, AWS led the cloud infrastructure services market with a 31% market share in the first quarter of this year. Microsoft Azure followed in second place.
AWS and Competitors’ Investment in Asia-Pacific
| Company | Country | Investment | Details |
|---|---|---|---|
| AWS | Taiwan | Billions (15 yrs) | New infrastructure region |
| AWS | Singapore | $9 billion (5 yrs) | Expand cloud infrastructure |
| Malaysia | $2 billion | New data center and cloud region | |
| Microsoft | SE Asia | Not disclosed | AI- and cloud-related investments |
The new AWS region in Taiwan is a testament to the company’s foresight in recognizing and capitalizing on the demand for advanced cloud services in Asia-Pacific. As businesses continue to embrace digital transformation, AWS’s strategic investments will likely play a pivotal role in shaping the technological landscape of the region, driving innovation and economic growth.
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