Recently, Amazon Web Services (AWS), the cloud computing division of Amazon, announced plans to invest "at least" $11 billion in Georgia to expand its infrastructure to support the development of various cloud computing and artificial intelligence technologies. This investment is expected to create approximately 550 jobs in the state. AWS stated in a press release, "We are proud to expand our business in Georgia, which will help advance the development of next-generation cutting-edge technologies such as artificial intelligence. We appreciate the support from state and local leaders and look forward to embracing the future of the digital age together with Georgia."
This investment initiative by AWS comes shortly after its announcement eight months ago of a similar $11 billion investment in Indiana to build data centers. This investment is expected to create at least 1,000 jobs. Georgia is gradually becoming a popular region for data centers. According to a report, by mid-2024, the annual growth rate of data center construction in the Atlanta market has reached 76%.
Atlanta's low electricity costs, existing fiber infrastructure, and state tax incentives have attracted the attention of many large tech companies. Tech giants like Google, Meta, Elon Musk's X company, and Microsoft are also heavily investing in infrastructure in the area. In 2023, Microsoft purchased hundreds of acres of land to build a data center expected to cost $1.8 billion.
However, local residents have not responded positively to the surge in data center construction. They believe that the expansion of data centers competes with the urgent demand for housing and other real estate needs. In September of last year, the Atlanta City Council also prohibited the establishment of new data centers near public transportation and popular trails, such as the Beltline.
Meanwhile, the demand for electricity from data centers is also quite high. Georgia Power relies on fossil fuels to some extent to meet the current and future electricity needs of data centers, a practice that has drawn criticism from environmental advocates. According to the real estate data company Green Street, by 2028, the data center load in the Atlanta area is expected to exceed 4,000 megawatts, more than 30 times the amount in 2012.
The rapid development of artificial intelligence is driving today's data center expansion projects. Developing and running AI requires significant computing power. Goldman Sachs estimates that by 2028, AI will account for about 19% of data center electricity demand. AI companies have also shown a strong willingness to invest. Microsoft recently stated that it expects to invest $80 billion in AI data centers this year. According to a report by McKinsey, over the next five years, capital expenditures for the procurement and installation of mechanical and electrical systems for data centers could exceed $250 billion.
