Amazon's AWS Commits $11 Billion Investment in Georgia to Advance AI Infrastructure

Amazon.com (AMZN.O) stated on Tuesday that its cloud computing unit, Amazon Web Services (AWS), intends to invest approximately $11 billion to enhance its infrastructure in Georgia to bolster cloud computing and AI technologies. nMajor tech firms are investing billions in artificial intelligence, underscoring the increasing demand for strong data centers and sophisticated infrastructure to facilitate AI-powered advancements and cloud services. Last week, Microsoft (MSFT.O), opens new tab revealed intentions to invest approximately $80 billion in fiscal 2025 for constructing data centers to train AI models and implement AI and cloud-centric applications. 

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AWS Invests $11B in Georgia AI Infrastructure

AI applications, ranging from machine learning to generative models, demand extensive computing resources. This creates a need for specialized data centers that allow tech firms to connect thousands of chips in groups.  "Amazon stated that the investments in Butts and Douglas counties are projected to generate hundreds of jobs and strengthen Georgia's status as a center for advanced digital innovation, noting that this will lead to the creation of 'at least 550 new high-skilled roles.'" 

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The rise in AI and cloud computing has led to a notable uptick in electricity usage in the U.S., since AI data centers require large quantities of energy.  A study by the Electric Power Research Institute in May indicated that data centers might consume as much as 9 per cent of the total electricity produced in the U.S. by the decade's end, contingent on the rates of AI and technology adoption. Amazon has established various contracts with U.S. utilities to provide electricity to its data centers across the country, including collaborations with Talen Energy (TLN.O) in Pennsylvania and Entergy (ETR.N) in Mississippi.