Amazon (AMZN) Stock: AWS to Build $5 Billion AI Data Center in South Korea
TLDR
- AWS will invest $5 billion in South Korea by 2031 for AI data center construction in regions near Seoul
- The investment breaks South Korea’s foreign direct investment record, exceeding Amazon’s previous $4 billion pledge from June
- AWS CEO Matt Garman revealed the plan during APEC summit discussions with President Lee Jae Myung
- The commitment forms part of AWS’s $40 billion investment strategy across 14 APEC countries through 2028
- Amazon stock closed at $229.25 on October 28, gaining 1.00% for the trading session
Amazon Web Services announced a $5 billion investment in South Korea’s artificial intelligence infrastructure. AWS CEO Matt Garman made the announcement during the Asia-Pacific Economic Cooperation summit in Gyeongju.
The investment will fund new AI data centers in the Incheon and Gyeonggi regions. Both areas sit on the outskirts of Seoul.
President Lee Jae Myung met with Garman to discuss the investment plans. Seven global companies attended the presidential meeting and pledged $9 billion total over five years.
Amazon.com, Inc., AMZN
This marks South Korea’s largest foreign direct investment ever. The figure tops Amazon’s own $4 billion commitment announced in June 2025.
Breaking Previous Investment Records
Amazon’s June investment focused on Ulsan in southeastern South Korea. That project partnered with SK Group to build the country’s largest data center.
The new $5 billion pledge pushes Amazon’s total South Korean investment above $9 billion. All projects target completion by 2031.
South Korea wants to rank among the world’s top three AI powers. President Lee said Amazon’s investment will speed up the country’s AI ecosystem development.
Garman shared details about AWS’s global expansion at a summit business event. The company plans to invest $40 billion across 14 non-U.S. APEC countries by 2028.
The AWS executive stated this investment creates $45 billion in additional U.S. GDP. Economic benefits spread throughout APEC member economies.
South Korea’s AI Advantages
AWS has already built data centers near Seoul. The new facilities will expand this existing infrastructure footprint.
South Korea houses Samsung Electronics and SK hynix. These two companies rank among the world’s top memory chip manufacturers.
Their chips power AI products and data centers. This domestic supply chain makes South Korea attractive for data center development.
OpenAI recently announced similar expansion plans in South Korea. The company will partner with Samsung and SK to build two data centers.
OpenAI calls the project a Korean-style Stargate with 20 megawatts of initial capacity. The company signed deals with Samsung Electronics and SK hynix for memory chip supplies.
South Korea has the second-highest number of paying ChatGPT subscribers globally. Only the United States has more subscribers.
AWS Regional Growth Strategy
AWS continues expanding its Asia-Pacific presence beyond South Korea. The company announced investments in Japan, Australia, and Singapore.
The broader $40 billion APEC investment runs through 2028. This regional strategy positions AWS to serve growing AI demand across Asia-Pacific markets.
Amazon stock traded at $229.25 at the close of October 28. The stock gained $2.28, representing a 1.00% increase for the day.
The post Amazon (AMZN) Stock: AWS to Build $5 Billion AI Data Center in South Korea appeared first on Blockonomi.
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