Amazon Web Services Plans for Saudi Arabia Region
In a strategic move set to unfold in 2026, Amazon’s cloud computing behemoth, Amazon Web Services (AWS), is all set to establish an infrastructure region in the Kingdom of Saudi Arabia. The soon-to-be-realized region, consisting of three availability zones, is poised to cater to the escalating demand for cloud services in Saudi Arabia and the broader Middle East region.
The development is designed to empower AWS in providing low-latency solutions, facilitating access to a wide array of cloud services including AI, machine learning, data analytics, and the Internet of Things. These offerings are aimed at enhancing the technology landscape for customers and supporting seamless operations for critical workloads in Saudi Arabia.
This bold initiative is not just about expanding reach; it’s about nurturing a tech ecosystem in the desert sands, ensuring that startups, enterprises, and a spectrum of organizations can leverage Amazon’s cloud prowess. The region’s establishment underscores Amazon’s stalwart commitment to the Middle East, with investments exceeding $5.3 billion earmarked for Saudi Arabia.
Penetrating the Asia-Pacific (APAC) Market
While the Saudi Arabian foothold marks a substantial milestone, AWS is also doubling down on its APAC presence. The company is gearing up to launch an infrastructure region in Malaysia, injecting a projected $6 billion by 2037 into the local economy.
Additionally, AWS is slated to infuse 2.26 trillion yen (approx. $15.24 billion) into Japan by 2027, consolidating its cloud infrastructure footprint across the country, particularly in Tokyo and Osaka.
The establishment of the second infrastructure region in Melbourne, Australia, in the previous year stands as a noteworthy move. This initiative, part of the AWS Asia Pacific (Melbourne) region, aims to foster a $4.5 billion investment by 2037 and bolster 2,500 full-time jobs annually.
Moreover, AWS’s plans for launching infrastructure regions in Israel (AWS Israel – Tel Aviv Region), Bangkok, Thailand, and Auckland, New Zealand, comprising three availability zones each, highlight the company’s concerted efforts to tap into the burgeoning APAC market. This region, a ripe ground for cloud technology, is forecasted to show a robust 15.1% CAGR in the cloud market between 2023 and 2030, nurturing an environment conducive for Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS).
Competitive Landscape in APAC
As Amazon charts its ambitious expansion, fierce rivals such as Microsoft (MSFT), Alphabet (GOOGL), and Alibaba (BABA) are not far behind in staking their claim on APAC’s burgeoning tech landscape.
Microsoft Azure is poised to launch five data centers in APAC, spanning regions in South-Central India, Indonesia Central, Malaysia West, New Zealand North, and Taiwan North. Microsoft Azure’s plans for a Saudi Arabia Central region are also in the pipeline.
Alphabet’s Google is making significant strides with its data center launches in Japan and Singapore, with additional regions in New Delhi, Melbourne, Doha, and Dammam further enriching its cloud infrastructure offerings.
Similarly, Alibaba is fostering an extensive presence in the APAC cloud market, with data centers strategically positioned across Singapore, Australia, India, and various other countries in the region, intensifying the cloud computing battleground.
