By Steven Scherer
JERUSALEM (Reuters) – Alphabet’s Google activated a local cloud region for Israel on Thursday, providing cloud to the country’s government and military in a bid to stimulate jobs and economic growth.
Israel signed an agreement with Google and Amazon Web Services (AWS) in May 2021 for the allocation of four phases of “Nimbus” for more than one billion dollars.
As a component of the project, billions of shekels will be invested in local infrastructure, Israel’s Finance Ministry said on Thursday.
Citing Google data, the ministry said the economic effect of creating Google’s only Israeli cloud region is expected to burden the Israeli economy through 2030 and more than 21,000 new jobs in the high-tech sector and others that help cloud business.
AWS is also expected to activate a cloud region in the early part of 2023, the ministry said.
He added that on-premises cloud zones in Israel will enable the move of vital IT systems from government to the cloud, extending the power of GovernmentArray, shortening reaction times to enable virtualization and reducing operational costs.
As a component of the agreement, Google and Amazon have committed to make reciprocal purchases and release commercial cooperation in Israel at 20% of the contract value.
(Reporting by Steven Scheer; Editing via Kirsten Donovan)
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