Amazon bringing cloud computing hub to Calgary with $4 billion investment
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In what Premier Jason Kenney is calling the largest tech investment in Alberta’s history, Amazon officials confirmed Monday they’re investing $4.3 billion in a cloud computing hub in Calgary.
The move, which will ultimately create 950 full-time jobs across Canada, is only Amazon Web Services (AWS) second such data region in the country, complementing one established in Montreal in 2016.
Kenney, whose UCP government has come under intense fire from critics both inside and outside its ranks for its handling of a number of issues and is struggling in opinion polls, called the announcement an economic watershed for Alberta and a vindication of his party’s economic strategy.
“This is a game-changer and the largest technology investment in Alberta’s history,” Kenney told a Calgary press conference.
“For anybody who thought that all of the great news in the Alberta tech and innovation sector was just a temporary flash in the pan, this is for real, this is big.”
Of those new jobs, 837 of them should be created by 2037, said Jobs, Economy and Innovation Minister Doug Schweitzer.
The Seattle-based company said the hub, with separate locations for each data centre, will allow customers to access a variety of cloud-computing products in Canada. This also means companies with data residency requirements will have the ability to store such information within the country.
Initial ground-breaking work has already begun on one of the local data centres expected to be built locally. Senior AWS officials expect the new region in Western Canada to launch in late 2023 or early 2024.
The company’s offerings already serve local tech firms like Benevity and Kidoodle.TV and the Alberta Motor Association, and will build on those partnerships, said AWS Canada general manager Eric Gales.
“We have tens of thousands of customers in Canada, many of whom are here in Alberta,” said Gales.
“This new region will join 25 other regions around the world for AWS.”
He said the company will be investing $21 billion in Canada by 2037 while reaching a 100 per cent renewable energy capacity by 2025.
AWS is also partnering with Mount Royal University to offer free training to candidates for entry-level positions to add to the 100,000 Canadians trained by the company since 2013, said Rejean Bourgault, AWS Canada’s country leader.
“This is all part of a new age in the Alberta economy … it will help to provide folks who are unemployed or underemployed the ability to gain the key skills they need,” said Kenney
An executive of one Calgary-based tech start-up said AWS has already been instrumental in the progress of his company.
“It was from the support of AWS that we grew into the company we are today,” said Daniel Riddell of Kidoodle TV.
“It’s important that companies embrace technology, embrace the cloud and embrace change.”
Following on Alberta’s best year in attracting tech investment — 2020, with $450 million — the AWS announcement shows the province is gaining the critical mass needed for a decisive economic transformation, said Kenney.
Alberta’s younger, highly-educated workforce, a low corporate tax regime, cheaper cost of living and attractive lifestyle were vital in attracting the data hub, said the premier.
The move comes four years after Calgary Economic Development made an unsuccessful pitch to Amazon to locate its second corporate headquarters in the city.
But the online retail behemoth did open a distribution centre just north of the city limits that same year.
Amazon employs nearly 40,000 people in Canada.
Twitter: @BillKaufmannjrn
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