AWS and Google have won a trial cloud contract from the Japanese Government.

Nikkei Asia reports that Japan's Digital Agency has picked Amazon Web Services and Google Cloud Platform as the first service providers for its nationwide cloud computing project.

Set up in September of this year, Japan’s Digital Agency aims to speed digital transformation across government agencies and departments and will reportedly control most of the government's IT budget.

AWS and GCP were reportedly chosen because they met about 350 requirements across security, data management, and legal issues, among others, a Digital Agency official said. The two companies will initially be used to run the agency's website, as well as by eight municipalities on a trial basis.

A Digital Agency official said the budget for government cloud computing until March 2022 is about 2 billion yen ($17 million) but the budget for the upcoming years is as yet undetermined.

"By providing cloud services under a direct contract with the Digital Agency, we will be the first to deliver cutting-edge technologies and best practices from around the world to help the Japanese government modernize its information systems," Amazon Web Services Japan said in a statement.

Google Cloud said it is "honored to have been selected as a provider of the Government Cloud...based on the Digital Agency's requirements for a cloud service that is fast, cost-effective, secure and convenient for users."

While the companies normally compete for government contracts, AWS and GCP were both recently jointly awarded a $1.2 billion tender to provide cloud services to the Israeli Government. Where both companies are in the midst of developing facilities in Israel, in Japan both companies already have available regions in Osaka and Tokyo.