On Tuesday, Amazon Web Services (AWS), Amazon’s cloud computing division, said that it plans to invest “at least” $11 billion in Georgia to expand its infrastructure to support various cloud computing and AI technologies.
AWS estimates that its investment will create roughly 550 jobs in the state.
“AWS is proud to expand our operations in Georgia to help drive the next generation of cutting-edge technologies such as AI,” the company wrote in a press release. “We’re grateful for the state and local leaders who have partnered with us, and we look forward to keeping Georgia at the leading edge of the digital age.”
AWS’ infusion comes about eight months after the company said it would pour the same amount of cash — $11 billion — into data centers in Indiana. That deal will create at least 1,000 jobs, AWS pledged.
Georgia is becoming a popular site for data centers. According to one report, by midyear 2024, data center construction had increased 76% year-over-year in the Atlanta market alone.
The city’s cheap electricity, existing fiber-optic infrastructure, and state tax incentives are attractive to Big Tech. Google, Meta, Elon Musk’s X, and Microsoft are other major infrastructure spenders in the region. In 2023, Microsoft purchased hundreds of acres of land to build a data center expected to cost around $1.8 billion.
Locals aren’t necessarily pleased about the developments, which they say compete with housing and other more pressing real estate needs. Last September, Atlanta’s city council banned new data centers from opening in neighborhoods near transit and the popular Beltline walking trail.
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Data centers also tend to have high power requirements. Utility Georgia Power is leaning in part on fossil fuels to generate enough capacity to power current and future data centers, a move that has been criticized by environmental advocates.
According to real estate data firm Green Street, by 2028, the Atlanta metro’s data center inventory could grow to a power load of over 4,000 megawatts — more than 30x the metro’s data center load in 2012.
The AI boom is responsible for driving many, if not most, of today’s data center expansion projects. AI requires lots of computing power to develop and run. Goldman Sachs estimates that AI will represent about 19% of data center power demand by 2028.
AI companies have shown a willingness to spend big. Microsoft recently said it was on track to invest $80 billion in AI data centers this year. Per a McKinsey report, capital spending on procurement and installation of mechanical and electrical systems for data centers could eclipse $250 billion in the next five years.
