This is clearly a DoD play. The federal government as a whole is thirsty for cloud services and having a services provider like Amazon literally at their doorstep is going to win them a lot of work. If they do bring good experts to government work instead of what the typical government contractors in the area provide this will be a good thing for taxpayers.
Sure AWS needs a sales office in the region. And a datacenter. And a lobbying shop too. Pretty sure they got all that covered already.