Tech giant Amazon has announced that it has opened its second Canadian cloud server hub, this one 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 on Monday. Eric Gales, director of AWS in Canada, said the new hub will open at the end of 2023.
While Gales did not specify how many Amazon employees will work directly on the new server cluster, he said the project will create up to 950 direct and indirect jobs (via construction, facility maintenance, needs for electricity and other support services) in Canada by 2037. Hiring for the new Calgary data center will begin immediately.
“We are delighted to announce that we are opening positions today for our data center operations (in Calgary),” Gales said at a press conference in Calgary.
“When you combine our existing region in Montreal and this new region announced today, AWS will invest $ 21 [billion] in Canada by 2027.
Amazon announces it will invest $ 4.3 billion by 2037
For the Calgary area in particular, Gales said, Amazon plans to invest $ 4.3 billion by 2037 in construction, utility costs and the purchase of goods and services from local businesses.
The new data center hub will serve the growing number of AWS cloud computing customers in Western Canada, Gales said.
The company chose Calgary because it is well placed in the region, because it is connected to national and international infrastructure and because it offers access to renewable energies that will allow the company to meet its objectives of reduction in emissions, he added.
“Calgary continues to grow as one of Canada’s premier destinations for technology and innovation companies. Our high quality of life, low operating costs, and growing tech talent base put Calgary on the map for businesses looking to expand or relocate. Calgary Mayor Jyoti Gondek said in a Calgary Economic Development statement.
“We look forward to the significant investment AWS will contribute to our economy and communities, and the opportunities it will create for Calgarians. “
On Monday, Alberta Premier Jason Kenney hailed Amazon’s announcement as a “game changer for the Alberta economy.”
The province is looking to grow its tech sector in a bid to diversify its oil and gas-based economy and tackle its unemployment rate, which remained above the national average in October at 7.6%.
“For anyone who thought all the good news in Alberta’s tech sector was just a temporary flash in the pan, that says no, it’s real,” Kenney said.
Tech companies have more than doubled since 2018
According to Alberta Enterprise Corp., the number of technology companies in the province has more than doubled since 2018, from 1,238 to more than 3,000 by the end of 2020.
In 2020, Alberta recorded a record year for venture capital investment, with 51 deals totaling $ 455 million in investment, a 100% increase from 2019.
There have also been a number of important tech-related announcements specifically in Calgary in recent months, including from RBC, which plans to open an innovation hub in the city, creating 300 jobs over three years.
Indian IT companies Mphasis and Infosys have also both announced plans to expand to Calgary, bringing with them a pledged total of 1,500 tech jobs.
Kenney pointed out that Monday’s Amazon announcement was further proof that Alberta is on a roll when it comes to tech attraction.
In 2017, Calgary launched an unsuccessful campaign to attract Amazon’s “H2Q” head office.
During his tenure, former Calgary Mayor Naheed Nenshi spoke on several occasions of the city’s desire to attract a “big fish” – a company with high notoriety that would bring jobs, attract workers and would consolidate the city’s reputation as a booming technology hub.
“Evil alcohol lover. Twitter junkie. Future teen idol. Reader. Food aficionado. Introvert. Coffee evangelist. Typical bacon enthusiast.”