In Gold Coast, Australia, Amazon has secured a A$2 billion contract with the Australian Signals Directorate, the agency responsible for foreign signals intelligence and information security. A local Amazon Web Services affiliate will build a top-secret cloud to provide secure data storage for military intelligence.

The agreement will securely manage top secret data vital to Australia's national security. This contract is expected to last more than a decade. It will build three secure data centers in undisclosed locations in Australia.

Prime Minister Anthony Albanese said this project will "strengthen our national defense and intelligence community to ensure they can provide world-leading protection for our nation."

The project, which will be operational in 2027, is expected to create more than 2,000 jobs and cost billions more in operating expenses in the coming years. So why Amazon? And does Australia really need it?

Why Australia needs a secret cloud

Australia faces a rising wave of security challenges. The ability to securely store military intelligence is vital to protect against a range of potential threats.

Australian Signals Directorate Director-General Rachel Noble explained that the project will provide a "state-of-the-art collaboration space for our intelligence and defense community to store and access top secret data."

The cloud is also part of the directorate's REDSPICE programme, which aims to enhance Australia's intelligence capabilities and cyber defences. By moving to a modern cloud system, Australia can better protect its sensitive data. It will also improve coordination between different security agencies.

Why Amazon Web Services?

You may only know Amazon as an online retail giant. Amazon Web Services (AWS) is a technology subsidiary of Amazon. In fact, it was a pioneer in the cloud services business.

Today, it provides cloud computing services to tens of thousands of businesses and governments around the world.

AWS's market share among the top ten cloud providers grew to 50.1 percent in 2024. Microsoft Azure and Google Cloud are the next two largest providers.

Known for its reliability, scalability, and security, AWS already provides similar services to other governments and organizations globally. This includes the United States Department of Defense and the Central Intelligence Agency (CIA), as well as the three UK intelligence agencies.

Will the new cloud be secure?

When we think of “the cloud,” we often imagine the Internet we use every day.

However, the top-secret cloud that AWS will build for the Australian military is very different. It is a private and highly secure system completely isolated from the public Internet.

While AWS is the contractor, the data centers will be built to Australian Signals Directorate specifications.

The cloud will use advanced encryption to protect data. No system is completely hack-proof, but this setup makes it extremely difficult for unauthorized people to access information.

The Australian government has emphasized that it will maintain full control over data stored in the cloud. Only personnel with high-level security clearance will work on the project.

Broader trend

This move to a secure cloud is part of a broader trend in government and military technology around the world. Many countries are upgrading their old computer systems to take advantage of new technologies. This can offer greater flexibility, better performance and potentially lower costs in the long term.

The project also has international implications. The Top Secret cloud will facilitate collaboration with partner countries.

Similar data clouds have already been established in the US and UK, enabling large amounts of information to be shared between allies. It's worth noting that potential adversaries are also investing heavily in similar technology.

By developing this top-secret cloud, Australia aims to stay ahead of the rapidly evolving cyber threat environment. In the coming years, we are likely to see more countries adopt similar cloud systems for their defense and intelligence needs. (The conversation)

P.Y.

P.Y.