FILE PHOTO: The logo of Amazon Web Services (AWS) is seen during the 4th annual America Digital Latin American Congress of Business and Technology in Santiago, Chile, September 5, 2018. REUTERS/Ivan Alvarado

SAO PAULO (Reuters) - The cloud computing unit of U.S. Amazon.com Inc will invest 1 billion reais ($236.18 million) in the Brazilian state of Sao Paulo over the next two years, the state government said on Wednesday, to strengthen its infrastructure in South America.

“With this major investment by AWS, Amazon’s cloud computing business, we will create more jobs, technology and also opportunities for startups,” governor João Doria said in the statement.

The move comes as the company also strives to expand its in online retailing in the increasingly competitive Brazilian market, where well-established local players pose a challenge to international rivals.

In December, almost a year after launching its first in-house fulfillment and delivery network in Brazil, Amazon.com announced plans to open a new distribution center in the northeastern state of Pernambuco.