E-commerce giant Amazon’s (NASDAQ:AMZN) cloud computing unit, AWS (Amazon Web Services), is placing a big bet on Taiwan.
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AWS’ Taiwan Move
AWS plans to launch an infrastructure region in Taiwan by early 2025. This move will enable customers who want to keep their content in Taiwan to securely store their data in local data centers. Moreover, AWS aims to invest billions of dollars into Taiwan over the next 15 years.
Additionally, AWS plans to launch 21 availability zones and seven AWS regions across multiple geographies, including Malaysia, Mexico, New Zealand, Saudi Arabia, and Thailand. The company’s strategy involves placing its availability zones far enough from each other to offer business continuity for clients, but close enough to ensure low latency. Each availability zone has independent power, cooling, and physical security.
Part of AWS’ Rapid Global Expansion
Importantly, AWS is Amazon’s most profitable vertical, and the company is fully committed to ramping up its global presence. Recently, AWS announced plans to expand its footprint by investing $9 billion in Singapore and $15 billion in Japan. The company also plans to invest nearly $5 billion each in Mexico and Saudi Arabia, according to the Wall Street Journal. Additionally, AWS aims to invest nearly $13 billion in India by the end of this decade.
These investments are set to further boost AWS’s vast geographic presence. The cloud services provider currently has 105 availability zones in 33 regions across the globe.
Is Amazon Stock a Buy, Sell, or Hold?
Amazon’s share price has jumped by nearly 48% over the past year amid a broad-based rally in the tech sector. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average AMZN price target of $221.20.
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