Amazon.com (AMZN.US) announced on Monday that it will invest $12 billion to construct its first data center facilities in Louisiana, USA, to support its cloud computing and artificial intelligence operations. Major hyperscale cloud providers in the United States are competing for dominance, pouring hundreds of billions of dollars into data center infrastructure to enhance computing capacity, which is essential for advancing AI technologies. Amazon had previously stated it would invest up to $200 billion this year, primarily in its AWS division, to meet strong demand for AI workloads. At the same time, Meta Platforms (META.US) increased its capital expenditures by 73% to 75%, reaching between $115 billion and $135 billion, largely for building out its AI infrastructure. Other tech giants, including Google (GOOGL.US), have also announced higher capital expenditure budgets for this year. Amazon's investment in Louisiana closely mirrors moves by rival Meta, which is constructing one of its largest U.S. data centers in the state. Louisiana has become a popular location for AI infrastructure projects due to significant tax incentives, lower electricity prices, and a reliable power grid. Data center investments already account for more than one-third of the $61 billion in capital investments the state has attracted for 2025. Amazon stated that the project will create approximately 540 new on-site jobs and support around 1,700 jobs across the broader community. The company plans to hold a groundbreaking ceremony for the project in the coming weeks.
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