Amazon announced on Monday that it would invest $12 billion in new data center campuses in Louisiana, along with the necessary infrastructure to support artificial intelligence and cloud computing.
The campuses are to be constructed in Caddo and Bossier Parishes in the northwestern part of Louisiana. Amazon anticipates generating 540 full-time jobs at the data centres and supporting approximately 1,700 additional jobs serving the sites, including electricians, HVAC technicians, and security professionals.
Amazon earlier this month announced that it plans to invest $200 billion in capital expenditures this year, surpassing the combined projections of all other hyperscalers, which collectively have projected expenditures of close to $700 billion for 2026.
Wall Street has taken a critical eye on the capex plans of Amazon, with the shares declining on nine consecutive days since it released its earnings report on February 5. The slide wiped its market value, exceeding $450 billion.
The majority of Amazon’s expenditure is expected to be on AI-related projects, such as data centers, chips, and networking equipment. Tech firms are scrambling to increase their data center presence in response to the demands of firms that wish to execute AI models.
However, Amazon, Microsoft, and Google have all invested hundreds of billions of dollars to develop mammoth data centers. In another joint venture worth $27 billion with Blue Owl Capital, Meta has chosen Louisiana to locate its huge Hyperion data center as well.
The intensive construction of AI data centers by technology firms has received partial pushback within local communities where the data centers are located.
The residents have claimed that the data centers may become a burden on the electricity and water supply, as well as have a negative effect on the quality of life.
Microsoft last year abandoned a planned site in rural Wisconsin after residents raised environmental and financial concerns.
Amazon stated that it worked with the local utility, Southwestern Electric Power Company, “to ensure we pay 100% of the costs” associated with the campus, including expenses around new and upgraded energy infrastructure.
It will also seek to cool the data centers using natural air, where feasible, in an effort to cut the electricity requirement. The company indicated that the Louisiana plants will utilize only excess water in the vicinity and therefore “no strain on local water supplies.”
Amazon will put up to $400 million on the water infrastructure in the community in support of the site. Amazon reported that it is collaborating with data center developer Stack Infrastructure on the project.
