(Reuters) -Amazon.com said on Tuesday that its cloud computing division, Amazon (NASDAQ:AMZN) Web Services (AWS), plans to invest about $11 billion to expand its infrastructure in Georgia to support cloud computing and AI technologies.
Big Tech companies are pouring billions into artificial intelligence, highlighting the growing need for robust data centers and advanced infrastructure to support AI-driven innovations and cloud services.
Last week, Microsoft (NASDAQ:MSFT) announced plans to invest about $80 billion in fiscal 2025 to develop data centers for training AI models and deploying AI and cloud-based applications.
AI applications, from machine learning to generative models, require vast computing resources. This drives demand for specialized data centers that enable tech companies to link thousands of chips in clusters.
"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."
This surge in AI and cloud computing has also driven a significant increase in U.S. electricity consumption, as AI data centers consume vast amounts of energy.
An Electric Power Research Institute analysis in May said data centers could use up to 9% of total electricity generated in the U.S. by the end of the decade, depending on AI and tech adoption rates.
Amazon has secured multiple agreements with U.S. utilities to supply power to its data centers nationwide, including partnerships with Talen Energy in Pennsylvania and Entergy (NYSE:ETR) in Mississippi.