Nov 24 (Reuters) - Amazon.com ( AMZN ) is planning to
invest about $15 billion in Northern Indiana to build data
center campuses, the tech giant said as it looks to boost its
cloud computing capacity to support booming artificial
intelligence demand.
The new data center project, which comes on top of an $11
billion outlay announced last year, will add 2.4 gigawatts of
capacity in the region, Amazon ( AMZN ) said on Monday. It is also
expected to create 1,100 jobs.
The e-commerce behemoth, which is also the largest cloud
services provider in the world, has invested more than $31.3
billion in Indiana since 2010.
Tech companies like Alphabet, Microsoft ( MSFT )
and Meta are spending billions of dollars to develop AI
infrastructure, even though the returns from the investments
have been low.
Earlier in the day, Amazon ( AMZN ) also announced plans to invest up
to $50 billion to expand AI and supercomputing capabilities for
U.S. government customers of its cloud unit, Amazon Web
Services.
Amazon ( AMZN ) did not immediately respond to a Reuters request for
comment on whether the two announcements had any overlap.
For the Indiana project, Amazon ( AMZN ) has struck an agreement with
NIPSCO, one of Indiana's top natural gas and electric companies,
for the project.
The company has agreed to pay fees to use existing power and
cover the costs for any new power needs for the data center
project, without additional costs for local residents and
businesses.
(Reporting by Deborah Sophia in Bengaluru; Editing by Arun
Koyyur)