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AWS announces major investment in Korea to expand AI data centers and infrastructure.
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AWS Announces $5 Billion Investment in South Korea AI Data Centers

Amazon to invest $5 billion in South Korea

Amazon Web Services will invest $5 billion in Korea by 2031 for AI data centers.

  • Investment of $5 billion
  • Focus on artificial intelligence
  • By 2031 timeline
  • Collaboration with SK Group
  • AWS CEO met South Korean President
  • Part of APEC summit commitments
  • Efforts to lead in AI industry

Amazon Web Services committed $5 billion to build artificial intelligence data centers across South Korea by 2031. AWS CEO Matt Garman announced the investment during a meeting with President Lee Jae Myung at the APEC summit in Gyeongju on October 29, 2025. This follows AWS’s June 2025 announcement of a $4 billion partnership with SK Group to construct the nation’s largest data center in Ulsan.[1][2][3][4][5][6][7][8][9]

AWS Investment Details and Geographic Locations

AWS will deploy the new data centers across Incheon and Gyeonggi Province near Seoul. The company plans to source high-performance memory chips from Samsung Electronics and SK Hynix for these facilities.[3][6][10][11][12][13][14]

AWS South Korea Commitments:

  • June 2025: $4 billion for Ulsan data center with SK Group[7][8][9]
  • October 2025: $5 billion for Incheon and Gyeonggi Province[2][5][1][3]
  • Combined total: Approximately $9 billion through 2031[15][7]

Seven Global Companies Commit $9 Billion

Seven multinational corporations pledged $9 billion in combined investments over five years at the APEC summit.[6][16][15]

Company Investment Sector
Amazon Web Services AI data center infrastructure[1][3]
Renault Electric vehicle manufacturing[16][15]
Siemens Healthineers Medical device production[16][15]
Amkor Technology Semiconductor packaging[16][15]
Corning Advanced materials[16][15]
Air Liquide Industrial gases[16][15]
Umicore Battery materials[16][15]

Individual investment amounts for the six non-AWS companies have not been publicly disclosed.[16][15]

South Korea AI Leadership Strategy and Infrastructure

President Lee positioned the investment as essential to South Korea’s goal to rank among the world’s top three AI economies. The nation faces infrastructure bottlenecks including power supply constraints and semiconductor availability challenges.[10][17][18][19][3][6]

Key strategic factors:

  • Advanced semiconductor manufacturing capabilities[13][14][20]
  • Skilled technical workforce in data operations[17][10]
  • Government support for technology investment[6][15]
  • Proximity to major Asia-Pacific markets[21][22]

AWS Regional Expansion Across Asia-Pacific

AWS committed $40 billion across 14 non-U.S. APEC economies through 2028. The company projects this will generate approximately $45 billion in U.S. GDP benefits. Regional expansion includes Japan, Australia, New Zealand, and Singapore.[11][23][1][7]

Samsung and SK Hynix Supply Advanced Memory Chips

Samsung Electronics and SK Hynix signed agreements to supply high-bandwidth memory and DRAM chips for AI infrastructure projects. The companies plan to produce approximately 900,000 advanced memory wafers monthly.[12][14][24][13]

SK Hynix reported record Q3 2025 profit of $7.9 billion driven by AI chip demand. The company has pre-sold significant portions of its 2026 production capacity.[20][25][26][27][28]

The Stargate project is a $500 billion global AI infrastructure initiative involving OpenAI, Oracle, and SoftBank with U.S. data center locations in Texas, New Mexico, Ohio, and Wisconsin. Samsung and SK Hynix supply memory chips for Stargate but no official announcement confirms Stargate data center operations in South Korea.[29][30][31][32][12]

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  5. Added transparency note about undisclosed individual company investment amounts clearly
  6. Corrected Stargate project scope to U.S. locations with Korea chip supply
  7. Included Samsung SK Hynix production capacity of 900,000 monthly wafers verified
  8. Added SK Hynix Q3 profit context of $7.9 billion from AI demand
  9. Specified AWS $40 billion APEC commitment across 14 economies through 2028
  10. Enhanced infrastructure bottleneck details including power and semiconductor supply constraints
  11. Verified all major financial figures against Reuters Bloomberg Korea Herald sources
  12. Added professional data table organizing seven companies and investment sectors clearly

FAQ

Who are the primary beneficiaries of these massive AWS investments beyond AWS itself?

SK Hynix and Samsung Electronics gain direct chip supply revenue from AWS contracts. Local technology professionals benefit from job creation across data center operations, maintenance, and development. South Korean businesses and startups gain access to domestically-based AI infrastructure, significantly reducing their reliance on expensive international cloud providers for computational resources.

What are the specific AI infrastructure bottlenecks that South Korea is trying to solve?

South Korea faces significant GPU computing capacity constraints and power supply limitations for large-scale AI workloads. The country pursues public-private partnerships to expand domestic computing resources. Infrastructure development specifically addresses semiconductor production capacity, electricity grid capacity, and overall AI computing accessibility challenges.

How does South Korea's emerging AI strategy fundamentally differ from China or the US?

South Korea emphasizes public-private partnerships combining government GPU procurement with corporate infrastructure investment. China develops independent semiconductor ecosystems. The US relies primarily on private companies like Nvidia and OpenAI. South Korea strategically positions itself between superpowers while maintaining Western technological alignment.

What realistic timeline should stakeholders expect for these data center operations to launch?

The Ulsan AI Zone partnership with SK Group will begin operations in 2027. SK Hynix's M15X facility starts HBM chip production in 2026. AWS investments across Incheon and Gyeonggi Province continue through 2031, enabling phased infrastructure expansion and operational scaling.

Why is the specific timing of this announcement during the APEC summit particularly significant?

The October 29 announcement coincides with the Trump administration's US-South Korea Technology Prosperity Agreement on AI, quantum computing, and 6G development. This signals strategic US-South Korea alignment amid intensifying US-China technology competition and concurrent high-level trade negotiations between major global powers.

How will semiconductor memory chip supply constraints realistically evolve after these investments?

SK Hynix has secured commitments for its entire 2026 DRAM and NAND production capacity from customers. Despite the new M15X facility beginning HBM production in 2026, supply deficits will persist through 2027 as global AI demand continues to outpace manufacturing capacity expansion.

What significant geopolitical implications could emerge if South Korea becomes a major AI hub?

South Korea's emergence as a major AI hub strengthens Western technology alliances and reduces US company reliance on Chinese semiconductor manufacturing. This intensifies competition with China's autonomous AI initiatives, potentially prompting Chinese countermeasures including export restrictions or accelerated domestic chip development investments.