TOKYO: Amazon Web Services (AWS) said on Friday it plans to invest 2.26 trillion yen ($15.24 billion) in Japan by 2027 to expand cloud computing infrastructure that serves as a backbone for artificial technology (AI) services.

The Amazon.com unit is spending to expand facilities in the metropolises of Tokyo and Osaka to meet growing customer demand, it said in a statement.

That comes on top of 1.51 trillion yen spent from 2011 to 2022 to build up cloud capacity in Japan, AWS said.

The company offers generative AI services to Japanese corporate customers including Asahi Group, Marubeni and Nomura Holdings, it said.

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The investment comes as Japan’s government and corporate sector race to catch up in AI development.

Prime Minister Fumio Kishida met with the heads of ChatGPT and advanced chipmaker Nvidia in the past year to discuss AI regulation and infrastructure.