Amazon’s substantial $20 billion investment in Australia’s data center infrastructure emphasizes the strong economic ties with the US, as noted by Labor’s industry minister ahead of Anthony Albanese’s first in-person meeting with Donald Trump.
The Prime Minister unveiled this significant deal at Amazon’s headquarters in Seattle this morning.
While addressing the media, Mr. Albanese mentioned that he and President Trump have planned to meet informally at the G7 summit in Canada, following Trump’s confirmation of his attendance.
There is growing pressure on Mr. Albanese to negotiate an exemption from extensive US tariffs and reinforce support for AUKUS after a review of the $368 billion defense agreement by the Trump administration.
Industry and Innovation Minister Tim Ayres stated on Sunday that the deal was “not intended” as a signal to Mr. Trump, but it “certainly highlights the strength of our economic, strategic, and technological relationship” with the US.
“This is not solely about trading goods and services,” Senator Ayres explained to Sky News.
“It involves collaboration in science, research, development, and industrial matters.”
He pointed to AUKUS as creating chances for both Australian and US companies to “invest in each other’s economies,” emphasizing it as a significant response to the US’s stance on tariff announcements.
“These tariffs aren’t actions that demonstrate friendship, as I and my colleagues have said repeatedly,” asserted Senator Ayres.
“They don’t favor Australia, and they do not benefit the US either.
“For instance, Australian steel exported to the US is essential for American supply chains and supports competitive industries that create jobs for American workers.
“Why would anyone want to raise the costs of Australian steel in the US?”
“That’s the impact of these tariff actions.”
He stated that Mr. Albanese would convey this viewpoint directly to the US President during their upcoming meeting.
“However, the Amazon agreement highlights how crucial our direct economic connection truly is,” Senator Ayres remarked.
During his press conference in Seattle, Mr. Albanese stated he would discuss tariffs and AUKUS with Mr. Trump.
Yet, he refrained from suggesting that the Amazon announcement was aimed at delivering a message to the US leader.
“The US Free Trade Agreement has been significant,” Mr. Albanese stated to reporters.
“It has received bipartisan backing both in Australia and in the US.
“Thus, we truly appreciate American investments in Australia.”
He further noted that it’s “important to highlight that the United States has a two-for-one surplus in our trading relationship, encompassing both goods and services.”
“Our aim is to expand the economic ties between our nations,” Mr. Albanese said.
“I’m confident that during my discussions with President Trump, we will address the significant economic partnership that serves both Australia’s and the United States’ interests.”
As part of this deal, Amazon has pledged to invest in the creation of data centers in Melbourne and Sydney over the next five years, focusing on areas like storage, networking, analytics, and secure services that support cloud and AI technology.
The company will also develop renewable energy solutions to power its operations.
Accompanying Mr. Albanese, Amazon Web Services CEO Matt Garman downplayed worries about Australia’s power grid being inadequate for AI demands.
“The rise of AI definitely requires more power, and that’s one of our considerations,” Mr. Garman noted to reporters.
“In the US, we view nuclear energy as part of our energy mix.
“Our investments in Australia focus on wind and solar, but ultimately, this is a global issue, and the growing demand for energy is undeniable.”
