Amazon's cloud computing division, Amazon Web Services (AWS), recently announced plans to invest at least $11 billion in Georgia to expand its data center infrastructure, supporting the development of various cloud computing and artificial intelligence technologies. AWS expects this investment to create approximately 550 jobs in Georgia.
In a press release, AWS stated, "We are proud to expand our operations in Georgia to drive the development of next-generation cutting-edge technologies such as artificial intelligence. We appreciate the collaboration with state and local leaders and look forward to maintaining a leading position in the digital age together with Georgia."
The announcement of this investment comes less than eight months after AWS announced a similar $11 billion investment in Indiana, which promised to create at least 1,000 jobs. Georgia is gradually becoming a popular location for data centers. According to a report, by mid-2024, data center construction in the Atlanta market is expected to increase by 76% year-over-year.
The low electricity costs, existing fiber infrastructure, and state tax incentives in Atlanta have led major tech companies such as Google, Meta, Elon Musk's X, and Microsoft to invest in infrastructure in the region. In 2023, Microsoft also purchased hundreds of acres of land to build a data center expected to cost around $1.8 billion.
However, local residents are not entirely satisfied with this development, as they believe it competes with housing and other more pressing real estate needs. In September of last year, the Atlanta City Council prohibited new data centers in communities near transportation and the popular BeltLine trail.
Moreover, data centers typically require a substantial power supply. Georgia Power is relying on some fossil fuels to meet the current and future power demands of data centers, a practice that has drawn criticism from environmental advocates. According to real estate data company Green Street, by 2028, the power load for data centers in the Atlanta area could exceed 4,000 megawatts, more than 30 times the load in 2012.
The rapid development of artificial intelligence is a major driver of today's data center expansion projects. According to Goldman Sachs, by 2028, artificial intelligence is expected to account for about 19% of data center power demand. At the same time, AI companies are willing to make significant investments. Microsoft recently stated that it plans to invest $80 billion in AI data centers this year. According to a report by McKinsey, capital expenditures for the procurement and installation of mechanical and electrical systems for data centers could exceed $250 billion over the next five years.
Key Points:
🌟 AWS plans to invest at least $11 billion in Georgia, expected to create 550 jobs.
🏢 Data center construction in Atlanta is rapidly increasing, projected to rise 76% year-over-year by 2024.
⚡ The high power demand of data centers has sparked environmental controversies, with Georgia Power partially relying on fossil fuels.
