Amazon to Invest $100bn in Data Centers

Amazon plans to invest over $100 billion in data centres over the next decade, focusing heavily on cloud computing and AI infrastructure. This investment surpasses the funds allocated to its vast e-commerce warehouse network. Amazon’s cloud business has been a major profit driver, and with the expected AI boom, demand for cloud computing is set to increase. AI’s need for intensive computing resources heavily relies on cloud services, and Amazon projects AI will generate tens of billions in revenue in the coming years.

In a related move, Amazon is in talks with owners of about a third of U.S. nuclear power plants to source electricity for its new data centres. This is in response to the rising demand for electricity driven by AI advancements. Amazon Web Services (AWS) is reportedly close to a deal with Constellation Energy, the largest U.S. nuclear power plant owner. This follows Amazon’s recent purchase of a nuclear-powered data centre in Pennsylvania for $650 million in March.

Amazon’s strategic investment in cloud computing and AI infrastructure, combined with its pursuit of stable and sustainable energy sources like nuclear power, highlights the company’s commitment to meeting future technological demands and maintaining its leadership in the cloud computing market.