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Amazon Web Services (AWS), a subsidiary of Amazon, announced the launch of a new AWS infrastructure region in Taiwan by early 2025. The AWS Asia Pacific (Taipei) Region aims to meet the growing demand for cloud services in Taiwan and across the Asia Pacific. AWS plans to invest billions of dollars in Taiwan over the next 15 years. The new region will include three Availability Zones, enhancing data security and reducing latency. AWS's investment is expected to drive digital transformation, create high-quality jobs, and support sustainable development initiatives. The AWS Partner Network in Taiwan is set to benefit significantly from this expansion.
Positive
AWS plans to invest billions of dollars in Taiwan over the next 15 years.
The new AWS Asia Pacific (Taipei) Region will have three Availability Zones.
This investment is expected to create high-quality employment opportunities.
AWS's new region will drive digital transformation in Taiwan.
The new AWS region will reduce latency for end users in Taiwan and the broader Asia Pacific region.
AWS is committed to the highest levels of security and resilience for cloud services.
Negative
The new AWS region will not be operational until early 2025, causing a delay in immediate benefits.
Significant initial investment may impact short-term profitability for AWS.
Insights
The announcement of AWS's intention to launch a new infrastructure region in Taiwan represents a substantial capital investment, specifically in the range of billions of dollars over the next 15 years. This move appears to be a strategic step for AWS to bolster its market position in the Asia-Pacific region, which is experiencing growing demand for cloud services. From a financial standpoint, the investment aligns with AWS's history of expanding its global footprint to drive long-term revenue growth. The focus on Taiwan, a key player in sectors like semiconductors and information technology, strengthens AWS's positioning. The financial merit of this expansion can be primarily ascribed to the enhancement of service availability and the potential to attract additional business from enterprises that prioritize data residency and low latency. This long-term investment could catalyze incremental revenue streams, although the financial benefits might not be significantly apparent in the immediate quarters but are likely to accrue progressively.
The technological implications of AWS establishing a new region in Taiwan are profound. AWS's commitment to providing advanced technologies such as compute, storage, databases, analytics, AI and machine learning will enable local enterprises to innovate more effectively. This infrastructure will include three Availability Zones, ensuring robust fault tolerance and high availability. The local presence also implies improved data residency, compliance and significantly lower latency, which are critical for industries such as finance, healthcare and gaming. For example, companies like Chunghwa Telecom and Gamania can expect improved performance and reliability, which in turn can enhance user experiences and operational efficiencies. Notably, this move aligns with AWS's broader goal of digital transformation across industries, offering diverse services that can drive productivity and innovation.
From a market perspective, AWS’s expansion into Taiwan showcases a strategic commitment to capturing the growing cloud services demand in the Asia-Pacific region. Taiwan’s established industries, particularly in semiconductors and ICT, will benefit from AWS’s advanced cloud capabilities. This expansion may also influence the competitive landscape, as AWS’s presence could drive competitive responses from other major cloud service providers like Microsoft Azure and Google Cloud. Additionally, the investment might stimulate related local businesses, generate employment opportunities and contribute to economic growth. For retail investors, the long-term value proposition rests on AWS’s ability to sustain its market dominance through continuous innovation and scaling in high-demand regions.
AWS Asia Pacific (Taipei) Region will enable customers to run workloads and securely store their content in Taiwan while serving end users with even lower latency
New Region reflects AWS’s long-term commitment to meeting high demand for cloud services in Taiwan and across Asia Pacific
AWS plans to invest billions of dollars into Taiwan to support the new Region
SEATTLE--(BUSINESS WIRE)--
Amazon Web Services (AWS), an Amazon.com company (NASDAQ: AMZN), today announced it will launch an AWS infrastructure Region in Taiwan by early 2025. The new AWS Asia Pacific (Taipei) Region will give developers, startups, entrepreneurs, and enterprises, as well as education, entertainment, financial services, and nonprofit organizations, greater choice for running their applications and serving end users from data centers located in Taiwan, ensuring that customers who want to keep their content in Taiwan can do so. As part of its long-term commitment, AWS is planning to invest billions of dollars in Taiwan over the next 15 years. For more information about AWS Global Infrastructure, visit aws.amazon.com/about-aws/global-infrastructure.
“AWS is committed to helping customers of all sizes and across all industries accelerate their digital transformation with the highest levels of security and resilience available,” said Prasad Kalyanaraman, vice president of Infrastructure Services at AWS. “The new AWS Region in Taiwan will enable organizations to unlock the full potential of the cloud and build with AWS technologies like compute, storage, databases, analytics, machine learning and artificial intelligence to drive innovation and transform the way businesses and institutions serve their customers. We look forward to helping customers and AWS Partners in Taiwan deliver cloud-enabled applications to accelerate growth, productivity, and innovation with lower latency from data centers located in Taiwan.”
“We appreciate AWS for offering a diverse array of innovative cloud services to both local and international enterprises. Taiwan boasts a well-established industrial cluster, particularly excelling in sectors such as semiconductors and information and communications technology,” said Mr. Jung-tai Cho, Premier of Executive Yuan. “We anticipate that the new AWS Region in Taiwan will foster a mutually beneficial, prosperous, and sustainable relationship. This investment is poised to catalyze the growth of related industry chains, generate high-quality employment opportunities, and advance sustainable development initiatives.”
The new AWS Region will consist of three Availability Zones at launch, adding to AWS’s existing 105 Availability Zones across 33 geographic regions globally. With today’s announcement, AWS has plans to launch 21 more Availability Zones and seven more AWS Regions in Malaysia, Mexico, New Zealand, the Kingdom of Saudi Arabia, Taiwan, Thailand, and the AWS European Sovereign Cloud. AWS Regions consist of Availability Zones that place infrastructure in separate and distinct geographic locations. Availability Zones are located far enough from each other to support customers’ business continuity, but near enough to provide low latency for high availability applications that use multiple Availability Zones. Each Availability Zone has independent power, cooling, and physical security and is connected through redundant, ultra-low-latency networks. AWS customers focused on high availability can design their applications to run in multiple Availability Zones to achieve even greater fault tolerance.
AWS offers the broadest and deepest portfolio of services, including analytics, artificial intelligence (AI), compute, database, Internet of Things (IoT), machine learning (ML), mobile services, storage, and other cloud technologies. The AWS Asia Pacific (Taipei) Region will enable customers with data residency preferences or requirements to store their content securely in Taiwan to achieve even lower latency, and serve demand for cloud services across Asia Pacific. Customers from startups and enterprises to public sector organizations and nonprofits will be able to use advanced technologies from the world’s leading cloud to drive innovation.
Customers welcome the AWS Region in Taiwan
Organizations in Taiwan are among the millions of active customers using AWS in more than 190 countries and territories around the world that choose AWS to innovate, drive cost efficiencies, and accelerate launch time. Organizations in Taiwan that choose AWS to run their workloads include Acer, Cathay Financial Holdings, Chunghwa Telecom, Gamania, KKCompany, Maicoin, Taiwan Semiconductor Manufacturing Company (TSMC), Trend Micro, and more.
Cathay Financial Holdings (CFH) is a leader in financial technology in Taiwan and continuously introduces the latest technology to create a full-scenario financial service ecosystem. Since 2021, CFH has built a cloud environment on AWS that meets security control and compliance requirements. “Cathay Financial Holdings will continue to accelerate digital transformation in the industry, and also improve the stability, security, timeliness, and scalability of our financial services,” said Marcus Yao, senior executive vice president of CFH. “With the forthcoming new AWS Region in Taiwan, CFH is expected to provide customers with even more diverse and convenient financial services.”
Chunghwa Telecom is a leader in cloud network services in Taiwan. Chunghwa Telecom offers broad 5G bandwidth, fast network speeds, and is one of the world’s leading mobile Internet providers. It has also invested in international submarine cables around the world, providing high speed, low latency and largescale private 5G connection to enterprises. It also leverages generative AI platforms such as Amazon Bedrock to build innovative services and create intelligent applications for various industries. “AWS is an important collaborator to Chunghwa Telecom. The development of an AWS Region in Taiwan will further drive the development of Taiwan’s information industry,” said Dr. Ivan Lin, president of Chunghwa Telecom. “Chunghwa Telecom will leverage AWS’s infrastructure and cloud technologies, and combined with our own experience running information systems and offering multiple AWS competencies, we’re looking forward to providing our customers with even lower latency, high bandwidth, and high-security direct connection services.”
Gamania, a leading Taiwanese online game developer, publisher, and operator, leverages the robust and scalable infrastructure of AWS to seamlessly run multiple game products under its brand, ensuring a highly reliable and secure gaming experience for their vast global player base. “Security and accessibility are critical for player satisfaction, and we rely on AWS to ensure uninterrupted gameplay throughout a game's lifecycle,” said Marco Chien, Gamania Taiwan COO. “The announcement of the new AWS Region in Taiwan will enable us to leverage the industry’s leading cloud services with low latency while storing data domestically, ensuring a seamless and uninterrupted gaming experience for our players. We are excited about the opportunities this presents, as it allows us to accelerate innovation and uncover new pathways for growth and expansion.”
KKCompany Technologies is one of Asia’s leading AI multimedia technology groups, with businesses covering its music streaming platform KKBOX, an AI-powered streaming solution in BlendVision, and cloud intelligence service Going Cloud. KKCompany has extensive experience serving major clients throughout Asia in cloud migration and digitization. The company offers consulting services in generative AI, multimedia technology, digital transformation and more for enterprises, operating under both B2C and B2B models. “KKCompany has been a long-term collaborator with AWS, collaborating to drive AI digital transformation in the industry,” said Steve Wang, KKCompany chairman and CEO. “We are thrilled to see AWS establishing data centers in Taiwan, which will strengthen our technical base in Taiwan and support our ambition to become a world-class software technology group.”
AWS Partners also welcome the new AWS Region
The AWS Partner Network (APN) is a global community that leverages AWS technologies, programs, expertise, and tools to build solutions and services for customers. The APN has more than 130,000 partners of independent software vendors (ISVs) and systems integrators (SIs) from over 200 countries around the world. AWS Partners build innovative solutions and services on AWS, and the APN provides business, technical, marketing, and go-to-market support to customers. AWS ISVs, SIs, and consulting partners help enterprise and public sector customers migrate to AWS, deploy mission-critical applications, and provide a full range of monitoring, automation, and management services for customers’ environments. AWS Partners in Taiwan include CKmates, eCloudvalley Digital Technology Group, Going Cloud Co., Ltd., MetaAge Corporation, Netron Ltd., Nextlink Technology, and many others. For the full list of AWS Partners, visit aws.amazon.com/partners.
eCloudvalley Digital Technology Group is an AWS Premier Tier Services Partner with a team of cloud experts with 500+ certificates. “eCloudvalley Group has always embraced our mission of being a cloud evangelist, driving the adoption of cloud technology across Taiwan’s industries,” said MP Tsai, CEO of eCloudvalley Group. “With a decade-long close collaboration with AWS, we are honored to help more and more customers and industries move to the cloud, while being part of customers’ digital transformation journey on AWS. We believe that the launch of the AWS Region will further support Taiwanese companies’ digital transformation and innovation in Taiwan with its world-leading cloud technology, while industries with higher local data residency requirements, such as finance and healthcare, will be able to further advance their cloud transformation journey.”
Nextlink is an AWS Premier Consulting Partner and certified Managed Service Provider (MSP) providing cloud services and solutions. “AWS’s investment in local infrastructure will help drive the digital transformation of Taiwanese companies, boosting the development of various industries spanning from traditional industries to emerging digital sectors,” said Shasta Ho, CEO of Nextlink Technology Inc. “The new AWS Asia Pacific (Taipei) Region will address customer needs in data localization, low latency, compliance, and high-performance computing workloads. We look forward to leveraging AWS’s world-leading cloud technologies to power customers’ digital transformation journeys, while contributing to the diversification of Taiwan’s economy.”
AWS investment in Taiwan
Since 2014, AWS has launched two Amazon CloudFront edge locations in Taiwan. Amazon CloudFront is a highly secure and programmable content delivery network that accelerates the delivery of data, videos, applications, and APIs to users worldwide with low latency and high transfer speeds. In 2018, AWS established its first of two AWS Direct Connect locations in Taiwan, allowing customers to establish private connectivity between AWS and their data center, office, or colocation environment. In 2020, AWS launched AWS Outposts in Taiwan. AWS Outposts is a family of fully managed solutions delivering AWS infrastructure and services to virtually any on-premises or edge location for a truly consistent hybrid experience. AWS expanded its infrastructure footprint in Taiwan again in 2022 with the launch of AWS Local Zones in Taipei. AWS Local Zones are a type of AWS infrastructure deployment that places compute, storage, database, and other select services closer to large population, industry, and IT centers, enabling customers to deliver applications that require single-digit millisecond latency to end users.
To support the growth in cloud adoption across Taiwan, AWS continues to invest in upskilling students, local developers and technical professionals, nontechnical professionals, and the next generation of IT leaders in Taiwan through offerings like AWS Academy, AWS Educate, and AWS Skill Builder. These programs and learning centers help learners of all backgrounds and experiences prepare for careers in the cloud. Since 2017, AWS has trained more than eight million people across the Asia Pacific-Japan region on cloud skills, including more than 100,000 people in Taiwan.
Commitment to sustainability
Amazon is committed to reaching net-zero carbon across its operations by 2040, 10 years ahead of the Paris Agreement, as part of The Climate Pledge. Amazon co-founded The Climate Pledge in 2019, and as part of that commitment, the company is on a path to match all of the electricity used by its operations with 100% renewable energy by 2025, five years ahead of the original 2030 target. See Amazon's public methodology for more on its approach. Amazon has been named the largest corporate purchaser of renewable energy for the last four years — a position it’s held since 2020, according to Bloomberg New Energy Finance. Amazon now has more than 500 renewable energy projects globally. Additionally, AWS will be water positive by 2030, returning more water to communities than it uses in its direct operations.
About Amazon Web Services
Since 2006, Amazon Web Services has been the world’s most comprehensive and broadly adopted cloud. AWS has been continually expanding its services to support virtually any workload, and it now has more than 240 fully featured services for compute, storage, databases, networking, analytics, machine learning and artificial intelligence (AI), Internet of Things (IoT), mobile, security, hybrid, media, and application development, deployment, and management from 105 Availability Zones within 33 geographic regions, with announced plans for 21 more Availability Zones and seven more AWS Regions in Malaysia, Mexico, New Zealand, the Kingdom of Saudi Arabia, Taiwan, Thailand, and the AWS European Sovereign Cloud. Millions of customers—including the fastest-growing startups, largest enterprises, and leading government agencies—trust AWS to power their infrastructure, become more agile, and lower costs. To learn more about AWS, visit aws.amazon.com.
About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.
When will the AWS infrastructure region launch in Taiwan?
The AWS infrastructure region in Taiwan is expected to launch by early 2025.
What are the benefits of the new AWS region in Taiwan?
The new AWS region will enhance data security, reduce latency, create high-quality jobs, and drive digital transformation in Taiwan.
How many Availability Zones will the new AWS Asia Pacific (Taipei) Region have?
The new AWS Asia Pacific (Taipei) Region will have three Availability Zones.
How much is AWS investing in Taiwan?
AWS plans to invest billions of dollars in Taiwan over the next 15 years.
What sectors will benefit from the new AWS region in Taiwan?
Sectors such as education, entertainment, financial services, and nonprofit organizations will benefit from the new AWS region.
Which companies in Taiwan are already using AWS?
Companies like Acer, Cathay Financial Holdings, Chunghwa Telecom, Gamania, KKCompany, and Taiwan Semiconductor Manufacturing Company (TSMC) are already using AWS.
