By Mike Cherney


SYDNEY--Amazon's cloud-computing business will build a top-secret cloud for Australia's government, improving the key U.S. ally's ability to share and analyze information and boost the resilience of its defense communications.

Australia said it will invest at least 2 billion Australian dollars, or US$1.3 billion, over the next decade in establishing and operating the top-secret cloud. The deal involves a strategic partnership between the Australian Signals Directorate, the intelligence service in charge of cybersecurity, and Amazon Web Services.

The top-secret cloud "will provide a state-of-the-art collaborative space for our intelligence and defense community to store and access top-secret data," said Rachel Noble, director general of the ASD. "This will transform how we work together as agencies and partners."

The cloud will support deeper collaboration with the U.S. and support Australian military operations while harnessing new technologies such as artificial intelligence and machine learning, the government said.

Australian government entities and companies have been the target of several high-profile cyberattacks in recent years, including one in 2019 that targeted the nation's Parliament. Cybersecurity professionals have been worried that cyberattacks are rising globally and stretching resources.

Although it can be difficult to ascertain who is behind such attacks, U.S. officials believe China is the most active and persistent cyber threat to the government, private sector and critical infrastructure. Beijing has denied being involved in cyberattacks.

U.S. tech companies have seen a significant business opportunity in Australia, which has had a rocky diplomatic relationship with China in recent years despite Beijing being its largest trading partner.

Microsoft in October said it would invest A$5 billion over the next two years in Australia to expand its cloud-computing and AI infrastructure while also partnering with the ASD. Amazon Web Services also previously said it would invest an additional A$13.2 billion in the country.


Write to Mike Cherney at mike.cherney@wsj.com


(END) Dow Jones Newswires

07-03-24 2350ET