ASD signs $70 million AWS cloud contract

The Australian Signals Directorate (ASD) has signed a $70-million deal with Amazon Web Services, bringing the cloud provider’s renegotiated government-wide deal to around $364 million in total value.

The new contract dwarfs the $6.3 million combined value of ASD’s previous 13 contracts with AWS, which date back to 2017, and come as AWS develops a Top Secret (TS) Cloud for ASD’s national security applications.

The three-year contract was signed via the Digital Transformation Agency’s recently renewed whole-of-government agreement with AWS for public cloud services.

While ASD declined to comment on the specifics of the contract when approached by iTnews, the broader TS Cloud initiative is expected to cost at least $2 billion over the next decade and is projected to significantly enhance Australia's cyber defence capabilities.

AWS, which recently flagged plans to expand its data centres in Sydney and Melbourne, first signed a government-wide agreement in 2019 with an initial value of $39 million, which climbed to $390.8 million within three years.

The government renewed the agreement in 2022 for another three years at a value of $174.1 million.

However, a review of contracts published on AusTender since the latest renewal — which took effect on April 1 2025 — reveals that federal agencies have signed deals amounting to a total of $364 million in just over two months.

The Australian Taxation Office (ATO) accounted for the largest share with a $147 million deal.

Other major AWS contracts awarded since April 1 include the Digital Transformation Agency – $64.7 million; Australian Securities and Investments Commission – $23 million; Australian Bureau of Statistics – $19.2 million; and the Department of Home Affairs – $14 million.

Meanwhile, the Department of Health and Aged Care also handed AWS a $22.9 million contract in April, but under a separate DTA standing arrangement.