Amazon Web Services Announces $7.2 Billion Investment in Israel

 

Amazon Web Services (AWS) on Tuesday announced a $7.2 billion investment in Israel and the creation of a new service region in the country for cloud computing.

According to AWS, the investment will run through 2037, generating nearly $14 billion in additional GDP growth and will support 7,700 jobs. The new AWS “region” means that Israeli public and private sector AWS customers will have access to three AWS data centers to run applications and store data. The announcement follows Amazon’s $1.2 billion ‘Project Nimbus’ contract with the Israeli government in 2021 to move ministerial services to the cloud.

The Algemeiner reported on Friday that the Amazon Labor Union (ALU), which represents more than 8,000 workers at Amazon’s JFK8 facility in Staten Island, New York, was a co-organizer of a protest calling for Amazon to boycott Israel over the Project Nimbus contract.

“We are here today to fight back, and everyone should have their chance to say that Amazon needs to be held accountable, Google needs to be held accountable, and the Israeli government should be held accountable for all charges and crimes,” ALU co-founder Jordan Flowers said at the rally.

Israel’s Accountant General Yali Rothenberg on Tuesday said in a statement that Amazon’s new investment, by contrast, showed the depth of AWS’ commitment to Israel.

“We are excited to welcome the new AWS Region to Israel as part of project Nimbus and we congratulate AWS for its commitment and hard work in building the Israeli Region,” Rothenberg said. “The establishment of the Israeli Region reflects the long-term commitment of AWS to Israel and to the continuation of their large investments in the Israeli market.”

AWS customers in Israel include the Government of Israel, Israel’s two largest banks, and the tech unicorn Wiz.

Speaking from the Israeli military’s Central Command in the wake of a terrorist attack near Jerusalem on Tuesday, Israeli Prime Minister Benjamin Netanyahu welcomed the AWS announcement.

“I would like to tell you that not only is the IDF strong but so is the economy. We were told today that Amazon is investing [$7.2 billion] in the Israeli economy; this is after we were told that Intel intends to invest $25 billion and that NVIDIA is building a supercomputer here,” Netanyahu said. “Indeed, the IDF is strong, as is the Israeli economy. Israeli society and democracy are coming out strengthened. I would like to tell you that I am working around the clock, together with others, on the solution.”