Key takeaways Amazon Web Services announces an additional $5 billion investment in South Korea to build AI data centers by 2031, marking the country's largest foreign investment to date. The new inves...
Amazon Web Services has committed an additional $5 billion to South Korea's artificial intelligence infrastructure, South Korea's presidential office announced Wednesday, solidifying the country's position as a major hub for AI development in the Asia-Pacific region.
The investment pledge was unveiled during a meeting between AWS Chief Executive Officer Matt Garman and South Korean President Lee Jae Myung on the sidelines of the Asia-Pacific Economic Cooperation summit in Gyeongju.
The funds will support the construction of new AI data centers in the Incheon and Gyeonggi Province regions near Seoul, with operations expected to extend through 2031.
According to the presidential office, this latest commitment represents the largest direct foreign investment in South Korean history.
The $5 billion pledge surpasses AWS's previous record-setting announcement from June 2025, when the company partnered with SK Group to invest $4 billion in building an AI data center in the southeastern city of Ulsan.
The announcement brings AWS's total investment in South Korea to 12.6 trillion won, equivalent to approximately $9 billion.
The company has already invested 5.6 trillion won in the country, according to AWS statements.
During the meeting, Garman expressed enthusiasm about South Korea's growth potential in the AI sector.
"(AWS) is very excited about the potential here in Korea and is making very large investments for the country here and for AI," Garman said. "And as part of that, we'll be committing to invest 5 billion dollars in additional AI infrastructure here in the country to help grow that technology."
The South Korea investment forms part of AWS's larger regional expansion plan. Speaking at a business event on the summit sidelines, Garman revealed that AWS has committed to investing an additional $40 billion across 14 non-U.S. APEC countries and economies through 2028.
"And, that $40 billion actually drives an additional $45 billion in U.S. GDP and downstream benefit, benefiting all of the APEC economy," Garman said.
AWS has announced similar infrastructure investments in other Asia-Pacific nations, including Japan, Australia, and Singapore, as global technology companies race to establish AI computing capabilities across the region.
President Lee emphasized that the AWS investment aligns with South Korea's goal to become one of the world's top three AI powerhouses.
The government has identified the AI sector as a critical component of its economic recovery and growth strategy.
"The greatest task facing the Republic of Korea right now is to recover our economy and continue growth. At the center of our recovery and growth is advanced science and technology, and I believe a core part of that is AI data," Lee said during the meeting. "It is a great pleasure to know that the Republic of Korea and AWS will share our future together."
The president also highlighted the development of an "AI expressway" initiative, designed to enable AI utilization across various industries and research fields throughout the nation.
Following the AWS meeting, President Lee participated in a global business investment partnership event with executives from seven international companies.
The firms collectively announced investment plans totaling $9 billion over the next five years, with $660 million in foreign direct investment reports already filed for near-term deployment.
The companies—AWS, Renault, Amkor Technology, Corning, Air Liquide, Siemens Healthineers, and Umicore- will direct their investments toward strategic sectors prioritized by the South Korean government, including AI, semiconductors, secondary batteries, future mobility, and biotechnology.
Nicolas Paris, CEO of Renault Korea, stated that Renault Group has designated Korea as one of its five key global strategic hubs.
The company plans to convert existing production lines at its Busan factory to manufacture electric vehicles.
Siemens Healthineers Asia-Pacific President Vy Tran announced plans to invest $50 million in Korea, expanding production lines for cardiac ultrasound device components in Pohang, North Gyeongsang Province.
The AWS partnership with SK Group for the Ulsan data center project represents a significant milestone in South Korea's push for AI infrastructure.
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