Amazon acquires George Washington University campus for $427 million to fuel AI expansion

Amazon data center unit acquires George Washington University Virginia campus

WASHINGTON, March 2 (Reuters) - Amazon (AMZN.O), opens new tab unit Amazon Data Services is acquiring George Washington University's Virginia Science and Technology campus for $427 million, the university said on Monday, part of a rapid expansion of infrastructure to support artificial intelligence. The campus student newspaper said the deed authorizes Amazon to build a data or information technology center on the site in Ashburn, Virginia. Amazon did not ⁠immediately comment. The company said in 2023 it planned to invest $35 billion by 2040 to expand data centers in Virginia, adding to $35 billion it had spent on data centers in northern Virginia over the 10 years to 2020. Tech firms' outlays have skyrocketed as they work to meet growing demand for AI software, computer chips and other infrastructure. The companies have committed at least $630 billion this year, and some investors ⁠fear a growing AI-led bubble. George Washington University, which is based in Washington, said the deal allows the university the option to keep programs at the site for up to five years. The university said the sale was "part ⁠of a broader strategy to strengthen GW's long-term financial health and to invest more deeply in our academic mission and community" but did not resolve ⁠the underlying causes of its structural deficit. GWU took actions last year to cut costs, including axing some jobs, curbing travel, reducing ⁠capital spending, and temporarily cutting salaries of the university's leadership team. It added it will likely still need to get smaller to address financial issues. Reporting by David Shepardson; Editing by Sonali Paul Our Standards: The Thomson Reuters Trust Principles., opens new tab

Amazon Expands AI Footprint With $427 Million George Washington University Campus Acquisition As Data Center Arms Race Intensifies - Amazon.com (NASDAQ:AMZN)

Amazon.com, Inc. (NASDAQ:AMZN) is reportedly acquiring George Washington University's Virginia Science and Technology campus in a $427 million dea. Amazon Deepens Virginia Data Center Bet Amazon, through its Amazon Data Services unit, is purchasing the campus in Ashburn, a key hub for U.S. data center infrastructure, Reuters reported on Monday. A campus student publication reported that the deed allows Amazon to develop a data or information technology center on the site. Amazon did not immediately respond to Benzinga's request for comments. Amazon's $35 Billion Virginia AI Data Center Push Amid Spending Surge The reported acquisition aligns with Amazon's broader cloud and AI expansion plans. In 2023, the company said it would invest $35 billion in Virginia data centers by 2040, adding to the $35 billion it had already spent in Northern Virginia over the previous decade, the report said. Tech companies have sharply increased capital expenditures to meet surging demand for AI software, advanced chips and computing power. Industrywide commitments have reached at least $630 billion this year, raising concerns among some investors about a potential AI-driven bubble. GWU Looks To Strengthen Finances George Washington University said the sale is part of a broader effort to bolster its long-term financial stability and refocus on its academic mission. The university retains the option to operate programs at the campus for up to five years. GWU has been grappling with a structural budget deficit and last year cut jobs, reduced travel and capital spending and temporarily lowered leadership pay. It said additional downsizing may be necessary to address ongoing financial challenges. Price Action: Shares of Amazon fell 0.77% on Monday, closing at $208.39. The stock declined an additional 0.47% in after-hours trading to $207.42, according to Benzinga Pro. Amazon stock ranks in the 72nd percentile for Quality in Benzinga's Edge Stock Rankings and the 58th percentile for Value. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: ACHPF via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.