Amazon is planning to invest over $100 billion in new data centers over the next ten years. This significant investment is aimed at enhancing the company’s artificial intelligence infrastructure, as it aims to keep up with the growing demand for data center services. The Seattle-based tech giant is set to launch at least 216 data center buildings in the near future, despite facing stiff competition in the AI sector from companies like Microsoft.
Amazon’s capital expenditure on data centers has been on the rise, with the company announcing more than $50 billion in new projects in the U.S. alone in the first half of this year. The bulk of this spending is focused on Virginia, where Amazon is expanding its data center infrastructure. Additionally, the company has announced major investments in states like Indiana and Mississippi, as well as in international locations like Taiwan, Singapore, and Germany.
The surge in data center construction is being driven by hyperscale cloud providers like AWS, which is the leading cloud provider with a 31% market share. However, Amazon’s lead has been shrinking due to increased competition from rivals like Microsoft and Google, who have been quicker to embrace AI as a growth driver. Microsoft, in particular, has gained market share due to its focus on integrating AI features into its Azure cloud products and partnering with AI companies like OpenAI.
Despite the tough competition, Amazon remains committed to expanding its data center footprint and investing in AI infrastructure to meet the growing demand for cloud services. AWS CFO John Felton emphasized the importance of innovation in the cloud computing space and the need for Amazon to stay ahead in the GenAI world. The company’s ambitious data center strategy reflects its determination to maintain its position as a leader in the rapidly evolving AI landscape.
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https://www.bisnow.com/national/news/data-center/amazon-will-spend-100b-on-ai-data-center-development-124938