Amazon Expands Cloud Presence in Southeast Asia with New Regions

Amazon's Chief Technology Officer, Werner Vogels, announced the opening of new cloud regions in Southeast Asia to meet the growing customer demand for secure local data storage and processing capabilities. The expansion is part of Amazon's ongoing efforts to bring its cloud services closer to customers worldwide.

The new Amazon Web Services (AWS) regions will be located in Indonesia and Malaysia, following the launch of regions in Singapore in 2010. AWS is also planning to open an infrastructure hub in Thailand. These regions will provide a range of AWS offerings, including compute, storage, and database services, to support the digital transformation and cloud adoption of businesses in Southeast Asia.

According to Vogels, many customers, including startups, large enterprises, and government agencies, have been requesting local cloud infrastructure to meet data residency requirements and protect personal information. The new cloud regions will enable customers to store data securely within their own countries, achieve lower latency, and access cloud services across the Southeast Asia region.

Why this matters: Amazon's investment in new cloud regions in Southeast Asia is part of the company's broader strategy to expand its global cloud infrastructure and cater to the growing demand for cloud services in the region. The move also supports the digital transformation goals of countries like Malaysia, which aims to become a high-income digital economy by 2030.

Vogels emphasized that security is Amazon's top priority and a major factor attracting companies and governments to use AWS in the region. "Security is our number one priority, and that's one of the major reasons that attracts customers and even governments to AWS in that we provide them with a secure platform on which they can build their applications," he stated.

AWS currently leads the global cloud service market, capturing 31% of total cloud spending in the fourth quarter of 2023. Analysts expect AWS to continue its strong growth, with a 16% year-over-year increase anticipated in the upcoming quarter. The company's stock has gained over 69% in the last 12 months, driven by its leading position in generative AI and potential growth opportunities in areas like advertising and the retail segment.

The expansion of AWS cloud regions in Southeast Asia is a significant step towards meeting the growing demand for secure and localized cloud services in the region. With an investment of $6 billion in Malaysia alone by 2037, Amazon is demonstrating its commitment to supporting the digital transformation of businesses and governments across Southeast Asia.

Key Takeaways

• Amazon to open new cloud regions in Indonesia, Malaysia, and Thailand to meet growing demand.
• New regions will enable customers to store data locally, achieve lower latency, and access cloud services.
• Security is Amazon's top priority, attracting companies and governments to use AWS in the region.
• AWS leads the global cloud service market, capturing 31% of total cloud spending in Q4 2023.
• Amazon to invest $6 billion in Malaysia by 2037 to support the region's digital transformation.