Amazon is making a massive investment of over 100 billion dollars in data centers over the next decade to meet the increasing demand for artificial intelligence (AI). The company believes that AI will drive demand for cloud services, which provide the computing power needed for AI applications. Amazon expects AI to bring in tens of billions of dollars in revenue in the future.
The tech giant is currently expanding its cloud infrastructure in various locations, including Virginia and Ohio. Amazon Web Services (AWS), which operates the company’s cloud business, will continue to have high infrastructure spending this year. Data center capital expenditures accounted for 53 percent of total capital expenditures last year, according to market research firm Dell’Oro Group.
Juan Felton, CFO of AWS, emphasized the importance of investing in technology, stating that “We have to jump into it. We have to figure it out.” Kevin Miller, vice president of global data centers at AWS, added that the company is focused on delivering capacity to meet the growing demand for cloud services.
Overall, Amazon’s investment in data centers is driven by its belief in the potential of AI and the importance of cloud services in supporting AI applications. The company is committed to expanding its infrastructure to meet the growing demand for cloud services and capitalize on the opportunities presented by AI.
Article Source
https://executivebiz.com/2024/07/amazon-investing-100b-on-cloud-infrastructure-expansion-to-meet-ai-demand/
