AWS Launches $2B in Cloud Programs for Defense and Intelligence

Defense contractors gain classified cloud access

Amazon Web Services has introduced AWS Secret Cloud for Industry (ASCI), enabling defense contractors to run classified workloads on AWS infrastructure for the first time. Previously, cleared contractors were required to build and maintain separate on-premises systems for classified programs—an approach that proved expensive, inflexible, and incompatible with modern capabilities like generative AI.

ASCI provides contractors with physically and logically isolated environments that meet stringent security and compliance requirements while maintaining their existing security models. Northrop Grumman has become the first partner to deploy on the platform. AWS is backing the initiative with up to $20 million in credits over three years to accelerate defense sector adoption.

Intelligence Community gets $1 billion migration framework

AWS announced the IC Accelerated Modernization Framework (ICAMF), a $1 billion program designed to eliminate migration costs that have kept intelligence agencies locked into on-premises systems. The program operates on a straightforward model: agencies that migrate qualified workloads to AWS receive credits, with up to $1 billion available through October 2030.

The framework ties credits directly to successful migrations, helping agencies overcome upfront hardware costs, ongoing facility expenses, and vendor lock-in. The goal is to free budget for deploying AI tools that enable analysts to work faster and surface insights more effectively.

Forward Deployed Engineering embeds AI experts with customers

AWS Forward Deployed Engineering (FDE) represents a $1 billion investment to embed thousands of expert engineers directly with customers to co-develop and deploy AI solutions. The program differs from traditional consulting by focusing on shared goals and business outcomes rather than billable hours.

FDE uses purpose-built agents to compress AI application development from months to days, with each deployment accelerating the next. Organizations including the Allen Institute, Cox Automotive, the NBA, Southwest Airlines, and the NFL are already working with AWS FDE teams. Customers leave engagements with both production AI systems and the internal capabilities to continue innovating independently.

Energy Department advances nuclear AI research

AWS is collaborating with Idaho National Laboratory on the Genesis Mission, a Department of Energy initiative using AI for breakthroughs in energy and national security. The partnership focuses on developing a digital twin of a small modular reactor to compress design cycles and advance autonomous reactor operations.

The National Nuclear Security Administration announced the establishment of a Secret/Restricted Data Enterprise Cloud environment with AWS—the first cloud environment authorized to process this classification level. The environment will house the NNSA's inaugural Genesis Mission workloads.

UK government deploys AI at national scale

The United Kingdom is using AWS to deploy AI across hundreds of government departments serving 67 million citizens. HMRC, the UK's tax authority, is investing over £450 million to migrate three legacy data centers to AWS, using AI and data analytics to help close a £47 billion tax gap while improving taxpayer experience.

Why it matters

These announcements signal AWS's strategic bet that public sector cloud adoption will accelerate when migration costs are removed and specialized support is embedded directly with agencies. By addressing the two primary barriers—upfront costs and technical complexity—AWS is positioning itself to capture workloads that have remained on-premises despite years of cloud-first policies. The classified infrastructure offerings also extend AWS's reach into defense contractor environments that have been largely inaccessible to commercial cloud providers.

The details were first reported by Amazon in an announcement about AWS Summit Washington, D.C., scheduled for June 29–July 1, 2026.