Amazon Is Spending $220 Billion on Data Centers. Here’s Why That Makes The Stock an Incredible Buy – AOL

Key Points

• AWS is seeing significant growth from its investments in data centers.

• Data center capital expenditures have consumed all of Amazon’s cash flows.

When a company announces that it’s spending nearly all of its available cash flows on capital expenditures, investors have the right to question those decisions. When the figure is as large as $220 billion, like Amazon(NASDAQ: AMZN) is spending, it really should have investors questioning what’s going on.

After digging in and investigating where the money is going, I think Amazon is doing just fine, and investors should be cheering on these investments in future growth. The implications for the company are incredible. After the dust settles in the artificial intelligence (AI) build-out, investors will be happy that Amazon made the tough choice to spend hundreds of billions of dollars on computing power.

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