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Amazon to open cloud computing hub near Calgary with promise of $4.3B
investment, 950 jobs | CBC News Loaded
Calgary
AMAZON TO OPEN CLOUD COMPUTING HUB NEAR CALGARY WITH PROMISE OF $4.3B
INVESTMENT, 950 JOBS
Tech giant Amazon says it has broken ground on its second Canadian
cloud-computing server hub — this one to be located in Calgary, bringing
billions of dollars of investment to the region.
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AMAZON WEB SERVICES (AWS) SAYS NEW HUB WILL OPEN IN LATE 2023
The Canadian Press · Posted: Nov 08, 2021 10:37 AM MT | Last Updated: November
9, 2021
An Amazon warehouse north of Calgary in Balzac, Alta., , shown in May 2020.
Amazon Web Services (AWS), the company's cloud division, plans to invest $4.3
billion through 2037 to open a second Canadian cloud computing server hub in the
Calgary area that will serve its growing number of customers in Western Canada.
(Jeff McIntosh/The Canadian Press)
145
comments
Tech giant Amazon says it has broken ground on its second Canadian
cloud-computing server hub — this one to be located in the Calgary area,
bringing billions of dollars of investment to the region.
Amazon Web Services (AWS), the company's cloud division, made the announcement
Monday. Eric Gales, head of AWS in Canada, said the new hub will open in late
2023.
Though Gales did not say how many Amazon employees will work directly at the new
server cluster, he said the project will create up to 950 direct and indirect
(through construction, facility maintenance, electricity needs and other support
services) jobs in Canada by 2037. Hiring for the new Calgary data centre will
begin immediately.
"We are delighted to say we are opening roles today for our (Calgary) data
centre operations," Gales said at a news conference in Calgary.
"When you combine our existing region in Montreal and this new region being
announced today, AWS will invest $21 [billion] in Canada by 2027."
AMAZON SAYS IT'LL INVEST $4.3B BY 2037
For the Calgary region specifically, Gales said, Amazon plans to invest $4.3
billion by 2037 through construction, utility costs, and buying goods and
services from local businesses.
The new data centre hub will serve the growing number of AWS cloud computing
customers in Western Canada, Gales said.
The company chose Calgary because it's well-placed in the region, is connected
to national and international infrastructure, and offers access to renewable
energy that will help allow the company to fulfil its emission reduction goals,
he added.
"Calgary continues to build momentum as one of the top destinations in Canada
for tech and innovation companies. Our high quality of life, low cost of doing
business, and expanding tech talent base are putting Calgary on the map for
companies wanting to expand or relocate," Calgary Mayor Jyoti Gondek said in a
statement from Calgary Economic Development.
"We look forward to the significant investment AWS will be contributing to our
economy and communities, and the opportunities it will create for Calgarians."
An Amazon spokesperson said the specific location of the hub will not be
revealed as a security measure.
On Monday, Alberta Premier Jason Kenney hailed Amazon's announcement as a
"game-changer for the Alberta economy."
The province has been seeking to grow its tech sector as an effort to diversify
its oil and gas-based economy and address its unemployment rate, which remained
higher than the national average in October at 7.6 per cent.
"For anybody who thought all the great news in Alberta's tech sector was just a
temporary flash in the pan, this says no, this is real," Kenney said.
TECH COMPANIES MORE THAN DOUBLED SINCE 2018
According to Alberta Enterprise Corp. the number of tech companies in the
province has more than doubled since 2018, from 1,238 to more than 3,000 as of
the end of 2020.
In 2020, Alberta posted a record year for venture capital investment, with 51
deals representing a total of $455 million in investment — a 100 per cent
increase over 2019.
There have also been a number of significant tech-related announcements
specifically in Calgary in recent months, including from RBC, which plans to
open an Innovation Hub in the city, bringing 300 jobs over three years.
Indian IT companies Mphasis and Infosys have also both announced plans to expand
to Calgary, bringing with them a promised total of 1,500 tech jobs.
Kenney pointed to Monday's Amazon announcement as further proof that Alberta is
on a roll when it comes to tech attraction.
In 2017, Calgary mounted an unsuccessful campaign to attract Amazon's
"H2Q" corporate headquarters.
During his tenure, former Calgary Mayor Naheed Nenshi spoke repeatedly about the
city's desire to attract a "big fish" — a company with major name recognition
that would bring jobs, attract workers, and cement the city's reputation as a
burgeoning tech hub.
CBC's Journalistic Standards and Practices|About CBC News
Corrections and clarifications|Submit a news tip|Report error
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