Amazon to invest $11 Billion to Strengthen Cloud and AI technologies

CIOTechOutlook Team | Thursday, 09 January 2025, 02:35 IST

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Amazon announced that its cloud computing segment, Amazon Web Services (AWS), intends to invest approximately $11 billion to enhance its infrastructure in Georgia to facilitate cloud computing and AI technologies. Major tech firms are investing billions in artificial intelligence, emphasizing the rising demand for strong data centers and sophisticated infrastructure to enable AI-powered advancements and cloud services.

Last week, Microsoft revealed intentions to invest approximately $80 billion in fiscal 2025 to build data centers for training AI models and implementing AI and cloud-centric applications. AI applications, ranging from machine learning to generative models, need extensive computing resources. This fuels the need for specialized data centers that allow tech companies to connect thousands of chips in groups.

"The investments in Butts and Douglas counties are expected to create hundreds of jobs and enhance Georgia's position as a hub for cutting-edge digital innovation," Amazon said adding that this is expected to create "at least 550 new high-skilled jobs."

The rise in AI and cloud computing has led to a notable uptick in electricity usage in the U.S., since AI data centers require substantial energy.

A May analysis by the Electric Power Research Institute indicated that data centers might consume as much as 9% of the overall electricity produced in the U.S. by the decade’s conclusion, influenced by AI and technology adoption rates. Amazon has finalized numerous contracts with US utility companies to provide electricity to its data centers across the country, including collaborations with Talen Energy in Pennsylvania and Entergy in Mississippi.

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