Amazon Expands AI Footprint With $427 Million George Washington University Campus Acquisition As Data Center Arms Race Intensifies

Amazon.com, Inc. (NASDAQ:AMZN) is reportedly acquiring George Washington University's Virginia Science and Technology campus in a $427 million dea.

Amazon Deepens Virginia Data Center Bet

Amazon, through its Amazon Data Services unit, is purchasing the campus in Ashburn, a key hub for U.S. data center infrastructure, Reuters reported on Monday.

A campus student publication reported that the deed allows Amazon to develop a data or information technology center on the site.

Amazon did not immediately respond to Benzinga's request for comments.

Amazon's $35 Billion Virginia AI Data Center Push Amid Spending Surge

The reported acquisition aligns with Amazon's broader cloud and AI expansion plans.

In 2023, the company said it would invest $35 billion in Virginia data centers by 2040, adding to the $35 billion it had already spent in Northern Virginia over the previous decade, the report said.

Tech companies have sharply increased capital expenditures to meet surging demand for AI software, advanced chips and computing power.

Industrywide commitments have reached at least $630 billion this year, raising concerns among some investors about a potential AI-driven bubble.

GWU Looks To Strengthen Finances

George Washington University said the sale is part of a broader effort to bolster its long-term financial stability and refocus on its academic mission.

The university retains the option to operate programs at the campus for up to five years.

GWU has been grappling with a structural budget deficit and last year cut jobs, reduced travel and capital spending and temporarily lowered leadership pay.

It said additional downsizing may be necessary to address ongoing financial challenges.

Price Action: Shares of Amazon fell 0.77% on Monday, closing at $208.39. The stock declined an additional 0.47% in after-hours trading to $207.42, according to Benzinga Pro.

Amazon stock ranks in the 72nd percentile for Quality in Benzinga’s Edge Stock Rankings and the 58th percentile for Value.

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

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