Amazon Web Services (AWS), the cloud arm of e-commerce giant Amazon, on Friday announced that it will invest about $15.5 billion (about 2.3 trillion yen) in Japan over five years between 2023 and 2027.

The company will use the amount to expand data centers — key facilities for cloud computing services — and strengthen business operations, reports Nikkei Asia.

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This comes on top of the 1.51 trillion yen (about $10.1 billion) that was invested in Japan to increase cloud capacity between 2011 and 2022.

The purpose behind this investment is to tap into the strong demand for cloud computing from Japanese companies and governments. The focus is on responding to generative AI, which is expected to expand in the future, the report noted.

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