Amazon commits $12 billion to Louisiana AI data centers as Wall Street questions spending spree

Amazon to spend $12 billion in Louisiana on AI data centers

The campuses will be built in the Caddo and Bossier Parishes, in northwestern Louisiana. Amazon said it expects to create 540 full-time jobs at the data centers and support about 1,700 other roles that will serve the sites, such as electricians, HVAC technicians and security specialists. Amazon announced earlier this month that it expects to invest $200 billion in capital expenditures this year, more than any of the other hyperscalers, which combined have forecast nearly $700 billion in 2026 expenditures. Wall Street has viewed Amazon's capex plans skeptically, as shares sank for nine days straight following its Feb. 5 earnings report. The slide shaved more than $450 billion off its market value. Most of Amazon's spending is expected to go to AI-related initiatives, including data centers, chips and networking equipment. Tech companies are racing to expand their data center footprints to meet the needs of companies that want to run AI models.

Amazon to Sink $12 Billion Into Data Centers as Wall Street (and Everyone Else) Turns Against AI Spending

Wall Street is starting to waver when it comes to the extraordinary amount of money being poured into AI projects, so Amazon has a pitch to try to quell concern: spending through it. The company announced Monday new plans to spend $12 billion building new data centers in northwestern Louisiana, according to CNBC. The new campuses will reportedly be built in Caddo and Bossier Parishes (Louisiana's equivalent to a county). The company is claiming the projects will create a total of 540 full-time jobs working at the data center facilities and 1,700 ancillary roles like electricians, HVAC technicians, and security specialists. Setting aside that companies have overestimated the number of jobs that their data centers will create, the idea that these facilities even get built assumes that the projects don't get hit with significant public pushback. In December, Amazon had to pack up shop in Tucson, Arizona, where it planned to build a $3.6 billion data center project, until it became a battleground between developers and the general public. Not all of Louisiana feels particularly open to data centers, either, considering the New Orleans City Council has moved toward banning the projects for at least one year. It's just not the Average Joe turning on data center buildouts, either. Wall Street has suddenly started to feel a bit iffy about just how much money is getting poured into AI projects. A couple of weeks ago, Amazon shocked the Street by announcing plans for $200 billion in capital expenditures for 2026, about $50 billion more than analysts expected. Much of that is expected to go toward AI infrastructure, but the figure has investors suddenly feeling a bit unsure as to whether they're actually going to get money back on this investment. Amazon's stock price took a hit shortly after the announcement, but clearly didn't deter the company from moving forward on making good on those spending plans. Amazon is one of the biggest hyperscalers setting out for massive expansion, but it's not alone. Google, Microsoft, Meta, and Amazon have pledged a combined $650 billion in capital expenditure for this year, driven by AI buildouts. That is a lot of money going toward funding a technology that a Goldman Sachs analyst recently said contributed "basically zero" to the country's GDP last year. Investors have some appetite for spending now as long as the return on investment is massive down the road. The fact that no one seems to have figured that part out yet suddenly made some people wonder if betting basically the entire economy on discovering an infinite money glitch may have been a bad idea.

Amazon Earmarks $12 Billion for Louisiana Data Centers | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The company will fully fund the infrastructure needed to power its operations. That includes working with a local utility to ensure Amazon covers all the expenses for new energy infrastructure and upgrades required to serve the data centers, investing in solar energy projects in Louisiana to add as much as 200 MW of carbon-free energy to the grid, and investing up to $400 million in public water infrastructure to support the data center campuses, according to the release. "Amazon's $12 billion investment in northwest Louisiana will build next-generation data center campuses to support AI and cloud computing, ensuring opportunities for local communities," David Zapolsky, chief global affairs and legal officer at Amazon, said in the release. Louisiana Gov. Jeff Landry said in the release that Amazon selected Louisiana for these projects because of the state's prime sites, infrastructure and workforce. "Investments of this magnitude put Louisiana at the center of operations relied on across the country and connect our communities to jobs that power how Americans live, work and do business," Landry said. Amazon is partnering with digital infrastructure firm STACK Infrastructure, the developer and owner of the campuses, to build the data center facilities. Matt VanderZanden, CEO of STACK Americas, said in the release: "This development reflects our commitment to investing at scale in ways that support long-term operations, strengthen local systems and contribute to sustained regional growth." In an earlier, separate announcement, Amazon Web Services (AWS) said in January that it plans to invest at least $11 billion in Georgia to expand infrastructure to support cloud computing and AI technologies. "AWS's ongoing infrastructure investments across the United States demonstrate our relentless commitment to powering our customers' digital innovation through cloud and AI technologies," Roger Wehner, vice president of economic development at AWS, said at the time in a press release. In June, Amazon said it was investing at least $20 billion in Pennsylvania to expand its data center infrastructure.

Amazon invests $12bn in Louisiana for AI data centers

Amazon has announced a $12bn investment to build new clusters of data centres in Louisiana, aimed at supporting the development of artificial intelligence and cloud computing. The facilities are expected to create 540 full-time jobs, as well as around 1,700 additional positions around the sites. The commitment is part of an investment program that could reach $200bn this year, the company said, as its major cloud rivals forecast nearly $700bn in combined spending by 2026. After the announcement alongside its results, Amazon's shares fell for nine consecutive sessions, wiping out more than $450bn in market cap. The infrastructure expansion has raised local concerns about electricity and water consumption. Amazon says it will cover 100% of the costs linked to new energy infrastructure, in cooperation with Southwestern Electric Power Company, and will favour air cooling where possible. The group says the sites will use only available surplus water and plans up to $400m in investments in public water infrastructure. The project will be carried out in partnership with Stack Infrastructure.