How the tech giant is doubling down on its business in Australia
Posted On August 2, 2021
A tech company that recently signed a deal to operate its Sydney office in Australia has doubled down on that decision, announcing that it is investing $2.8 billion in a $2 billion facility in Australia.
The deal, announced by the company on Tuesday, will be the largest investment in Australian technology by a company in the past year, as it aims to build an industry-leading infrastructure in the region.
It will also be the first time that the company has made a formal investment in Australia, and it will help it diversify its business, the company said in a statement.
The Australian Taxation Office said in its latest quarterly report that the deal includes $1.3 billion in new tax revenue, with $800 million in corporate tax concessions for businesses in the state.
That’s down from the $1 billion the company had hoped to generate in revenue, according to the agency.
The company also announced that it will invest $600 million to create 100 new jobs in Australia and the United States.
The company said the money will help to fund a range of its global expansion efforts, including a new office in London, Australia, where it will open a new offices next year.
The company is also bringing on a second Australian executive, John Cappelli, to help lead the new Australian operation.
Cappellis first worked in the United Kingdom and Australia in the 1990s.
He previously worked for Amazon in the UK, where he oversaw Amazon Australia’s retail operations.
The announcement comes at a critical time for Australia’s tech sector, which has seen a surge in investment in recent years.
Australian startups have attracted $13.4 billion in venture capital and $6.9 billion in funding in the first nine months of this year, according the Australian Venture Capital Association.
With that kind of investment, it’s clear that there’s a lot of talent out there, and the opportunity to expand in the industry, especially for Australia,” Australian tech industry leader Simon Danson said in an interview.