The Australian government said Amazon Web Services would design a "top secret" cloud for the country's military and intelligence agencies.
It would lead to "greater interoperability and deeper collaboration with the United States", one of Australia's most steadfast military allies, a government statement said.
Australian spy boss Rachel Noble said the cloud would also support the country's "Redspice" intelligence program, which aims to counter the growing risk of cyber attacks.
Amazon would build three data centres across Australia.
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