Amazon Pledges $12 Billion For Louisiana Data Centers, Aims To Create Over 2,000 Jobs

Amazon.com Inc. (NASDAQ:AMZN) announced a $12 billion investment in northwest Louisiana on Monday. The investment is earmarked for the development of data centers, which are projected to generate 540 full-time positions and support an additional 1,710 full-time equivalent roles in the community.

The investment will be spread across Caddo and Bossier Parishes, stimulating regional economic activity. The data centers will cater to cloud computing technologies, offering job opportunities for electricians, HVAC technicians, project engineers, network specialists, operations managers, and security specialists.

In line with Amazon’s pledge to fully finance the infrastructure needed for its operations, the company has joined forces with the local utility, Southwestern Electric Power Company (SWEPCO), to cover all costs associated with the new data center campus. This covers costs for building new energy infrastructure and making upgrades to support data centers, while also enhancing overall grid reliability for all SWEPCO customers.

Previous Louisiana Investments

Amazon invested in Louisiana solar projects in 2024, adding 200 megawatts of carbon-free power to the grid and supporting long-term electricity affordability. The company’s presence in the state already includes a robotics fulfillment center, a delivery station in Shreveport, and additional operational facilities.

A November report suggested that Amazon Web Services (AWS) operates more than 900 data centers across 50+ countries to meet the soaring AI demand. The new investment in Louisiana is a continuation of Amazon’s aggressive expansion of its data center infrastructure.

AWS Defends AI Spending Strategy

Earlier this month, the company pushed back against Wall Street’s growing skepticism over soaring AI-related capital expenditures. CFO Brian Olsavsky said AWS’s profitability remains strong despite heavier spending, with fourth-quarter operating margins rising 40 basis points year over year to 35%, even amid AI-related depreciation headwinds. At the same time, CEO Andy Jassy highlighted AWS' 24% annual growth and a $142 billion revenue run rate, adding that Amazon is rapidly monetizing new AI capacity as it is deployed.

Meanwhile, AWS CEO Matt Garman considers the idea of establishing data centers in space to be impractical and uneconomical, despite Jeff Bezos pursuing it. This highlights the critical role of land-based data centers in supporting AI's soaring demand for computing power, electricity, and cooling.

Benzinga's Edge Rankings place Amazon in the 73rd percentile for quality and the 58th percentile for value, reflecting its strong performance. Benzinga’s screener allows you to compare Amazon’s performance with its peers.  

AMZN Price Action: On a year-to-date basis, Amazon shares declined 9.37%, according to Benzinga Pro. On Monday, it fell 2.30% to close at $205.27.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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