AWS to Give U.S. Agencies $1B in Cloud Discounts by 2028

New GSA Agreement Aims to Fast-Track Federal Tech Upgrades and AI Readiness Through 2028

Amazon Web Services (AWS) has finalized a sweeping deal with the U.S. General Services Administration (GSA) that will provide federal agencies with up to $1 billion in cloud computing discounts through the end of 2028.

The agreement, announced Thursday, is aimed at helping government entities accelerate digital transformation efforts, with a focus on IT modernization, cloud migration, and workforce training. According to the GSA, the agreement will also serve as a springboard for integrating artificial intelligence tools and advanced data infrastructure across federal departments.

The multi-year commitment offers federal agencies broader access to AWS’s cloud services at significantly reduced costs—potentially saving taxpayer dollars while improving the agility of government operations.

“This partnership with AWS will help agencies adopt secure, scalable technologies more efficiently,” the GSA stated. “It’s a major step forward in enabling modern service delivery and harnessing the potential of emerging technologies like AI.”

The agreement does not include new legislation or funding but leverages the existing government-wide procurement vehicle known as GSA’s Cloud Blanket Purchase Agreement (BPA). AWS remains one of the top cloud providers serving public sector needs, competing alongside Microsoft Azure and Google Cloud in government contracts.

As agencies prepare for increased data workloads and the national push toward AI integration, cloud providers like AWS are positioning themselves as key infrastructure partners for federal digital strategy.

The GSA said the contract also includes expanded training and support services to help government teams fully utilize cloud tools—an area that has historically lagged due to skill gaps and legacy systems.

With federal IT transformation still in early stages across many departments, this agreement could mark a turning point in how the U.S. government approaches digital infrastructure over the next several years.

Also Read: AWS Outage Shuts Down Binance, KuCoin Services — Crypto Trading Disrupted Globally