Amazon is embarking on a massive expansion of its data centers, with plans to spend more than $100 billion over the next decade. This move marks the beginning of what Amazon is calling its “vast expansion era” for data centers, important for the future of artificial intelligence (AI).
As the global leader in cloud servers, Amazon Web Services (AWS) is set to create significant business opportunities for AI server shipments with its new data center expansion plans. AWS server OEMs, including Quanta, Wiwynn, and Inventic, are already seeing increased momentum in their shipping engines.
The construction of new data centers by Amazon will stimulate demand growth in high-speed transmission, leading to an increase in the need for optical modules in AI data centers in the future. This investment comes as a response to the growing demand for AI-related services.
Despite having opened data centers in the past, Amazon is now significantly ramping up its investment to meet the rising demand for AI capabilities. John Felton, who recently became AWS CFO after a career in Amazon’s retail fulfillment operations, emphasized the importance of adapting to this new era, drawing parallels to building Amazon’s delivery network in the past.
AWS is expanding its data center presence in various locations, including Virginia, Ohio, and beyond. Kevin Miller, vice president of AWS Global Data Centers, highlighted the company’s focus on delivering capabilities amidst this expansion, saying they are keeping their heads down and working towards meeting the demand.
In conclusion, Amazon’s substantial investment in data center expansion signifies its commitment to meeting the growing demand for AI services. This move is expected to create lucrative opportunities for AI server manufacturers and contribute to the overall growth of the AI industry. As Amazon continues to expand its data center infrastructure, it is positioning itself as a key player in shaping the future of AI technology.
Article Source
https://www.tweaktown.com/news/99106/amazon-aws-plans-to-spend-over-100-billion-10-years-on-data-centers-for-ai/index.html
