Seoul: Amazon will invest over $5 billion to build AI data centres in South Korea by 2031, Seoul said Wednesday, calling it the country's largest-ever foreign investment.

The commitment was announced by Matt Garman, head of Amazon Web Services (AWS), during a meeting with South Korean President Lee Jae Myung in Gyeongju on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.

"Garman unveiled plans to invest more than US$5 billion by 2031, including the construction of new AI data centres in the Incheon and Gyeonggi regions," Lee's office said, referring to areas near Seoul.

It marks the largest direct foreign investment in South Korea, the statement added, overtaking the previous record set by Amazon in June when it pledged $4 billion for another AI data centre in Ulsan.

"Our government has set a target of becoming one of the world's top three AI powerhouses," Lee told the Amazon executive.

"Amazon's additional large-scale investment in AI data centres will further accelerate the development of Korea's AI ecosystem."

South Korea is home to two of the world's leading memory chip makers -- Samsung Electronics and SK hynix -- which produce chips essential for AI products and the data centres that the fast-evolving industry relies on.

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