Isranomics

Amazon Web Services Invests billions in Israel with new local cloud server farm

by | Aug 1, 2023 | Company Reporting | 0 comments

Amazon Web Services (AWS) has made a significant move in Israel’s cloud computing industry by launching its cloud infrastructure. The company has set up three local server farms, marking a shift from its previous reliance on server farms abroad. This development follows Amazon’s success in securing the prestigious government cloud tender called “Nimbus” alongside Google Cloud about two years ago. The objective of the tender was to facilitate the digitization process for government ministries, various authorities, and the Israeli Defense Forces (IDF), involving a transition from local computing infrastructures to the cloud.

Yali Rothenberg, the accountant general of Israel, expressed that the creation of cloud services would facilitate the migration of significant government workloads to the cloud. He emphasized the belief that this move would play a crucial role in expediting the digital transformation within the public sector.

AWS announced it will invest nearly $7.2 billion in Israel by 2037, a figure that reflects the company’s optimism about Israel’s future as a tech hub. With the launch of local server farms, AWS aims to extend the benefits of cloud services beyond government entities and authorities. Developers, start-ups, enterprise organizations, and even non-profit entities can now leverage the new infrastructure to run applications with greater speed, efficiency, and performance, while at the same time taking advantage of the features such as storage and remote security.

This move is projected to make a significant contribution of approximately $13.9 billion to Israel’s gross domestic product, highlighting the potential economic impact of AWS’s presence in the region.

AWS underscores that using the local server farm will also elevate application security, an essential aspect in today’s digital landscape. With data privacy and protection becoming increasingly critical, the local cloud-based approach offers a more secure and reliable environment for building applications.

As the demand for cloud services continues to rise around the world, this strategic move by AWS is expected to further accelerate Israel’s digital transformation and strengthen its position as a tech hub in the region. The availability of localized cloud infrastructure opens up new opportunities for businesses of all sizes to innovate and thrive in the digital era.

Main article image: AWS’ logo as seen at the Collision conference in Toronto, Ontario, Canada June 23, 2022. REUTERS/Chris Helgren//File Photo

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