Amazon reportedly plans to spend a whopping $150 billion on data center construction over the next 15 years. This will position the tech giant to handle the explosion of artificial intelligence applications and other digital services.
This waste, which was previously reported, bloombergAmazon also holds about twice the share of second-place Microsoft in the cloud services market, allowing it to maintain its top spot.
“We’ve expanded our production capacity quite significantly,” said Kevin Miller, vice president of Amazon Web Services, Amazon’s cloud computing subsidiary used by more than 1.45 million businesses, according to an internal report. “I am doing so,” he said.
“I think this will bring us closer to our customers,” Miller added of the Seattle-based company’s investment in more data centers, according to Bloomberg.
Amazon has already committed to spending $148 billion over the past two years to build and operate data centers around the world in new regions such as Mississippi, Saudi Arabia, Malaysia and Thailand.
We will also use the savings to expand our existing server farm hubs in Virginia, adjacent to metro Washington, and our server farm hub in rural Oregon, which offers cheap hydropower and attractive tax breaks. Bloomberg reported that this is planned.
As it stands, Virginia and Oregon receive approximately $4 for every $5 that AWS spends on U.S. infrastructure.
But earlier this month, the company founded by Jeff Bezos purchased a site in the shadow of a nuclear power plant in northeastern Pennsylvania, and its future data center will be a carbon-free energy hub for digital hubs that will help the tech giant meet its goals. It will be used as a source.Commercial real estate company says its emissions goals Co-star.
Amazon purchased the 1,200-acre property for $650 million, making it the largest individual commercial sale in the U.S. so far this year, KoStar reported.
Once construction is complete, the AWS data center campus will have the capacity to power the energy equivalent of approximately 900,000 homes, or 960 megawatts.
It also revealed last month that it spent about $10 billion to acquire two data center campuses in Mississippi, which is considered the largest corporate project in the state’s history, according to Bloomberg.
There are also rumors of another AWS data center being built in Round Rock, Texas. The company received zoning approval to build a data center and power substation next to a former ranch it already owns. The ranch was purchased as part of a similar expenditure in 2018. Pandemic.
Still, Amazon’s expected data center spending dwarfs the commitments of Microsoft and Alphabet Inc.’s Google, which have a multi-year partnership with chat GPT maker OpenAI, according to Bloomberg, but both companies The companies did not disclose their farm-related expenditures, and spokesmen for both companies declined to discuss the comparison.
In 2023, Microsoft increased its data center spending by more than 50%, while AWS data center capital spending fell by 2% for the first time in history.
Most of the increased data center costs are aimed at meeting growing demand among businesses for large-scale file storage and databases, according to Bloomberg.
However, the hub has such huge computing power that, along with chips, it will be able to lend some of it to those needed for AI-assisted services.
To compete with OpenAI, Amazon is investing $4 billion in rival company Anthropic, which was completed on Wednesday, to build its own tools using the fast-growing technology.
As part of the partnership, Amazon announced that it will deploy future AI models on AWS Trainium and Inferentia chips. This is a diversion from most other AI applications, including those in OpenAI’s portfolio and Google’s Bard, which rely on Nvidia’s expensive chips.
Anthropic’s co-founders, brother and sister Dario Amodei and Daniela Amodei, are likely very familiar with these chips, as they both previously held VP-level positions at ChatGPT maker OpenAI.
