Aerial view of the Amazon Web Services data center known as US East 1 in Ashburn, Virginia, USA on October 20, 2025.
Jonathan Ernst | Reuters
Amazon announced Monday that it plans to spend $12 billion on a new data center campus in Louisiana and infrastructure to power artificial intelligence and cloud computing.
The campus will be located in Caddo and Bossier Parishes in northwestern Louisiana. Amazon said it plans to create 540 full-time jobs at the data center and support about 1,700 other roles serving the site, including electricians, HVAC technicians and security specialists.
Amazon announced earlier this month that it expects to spend $200 billion in capital spending this year, compared to other hyperscalers that together expect to spend nearly $700 billion in 2026.
Wall Street has expressed skepticism about Amazon’s capital spending plans after the company’s stock price fell for nine consecutive days following its Feb. 5 earnings report. The decline wiped out more than $450 billion in market value.
Most of Amazon’s spending is expected to go toward AI-related initiatives such as data centers, chips and networking equipment.
Technology companies are racing to expand their data center footprints to meet the needs of companies wanting to run AI models.
Amazon, microsoft and google They have all invested hundreds of billions of dollars to build huge data centers. meta The company also selected Louisiana as the home for its massive Hyperion data center in a $27 billion joint venture with the company. blue owl capital.
The rapid construction of AI data centers by technology companies has also been met with some backlash in the communities where the facilities are based. Residents argue that data centers waste electricity and water resources and could negatively impact quality of life.
Microsoft pulled out of a proposed site in rural Wisconsin last year after residents raised environmental and financial concerns.
Amazon said it worked with local power company Southwestern Power Company “to ensure that we pay 100% of the costs” associated with the campus, including costs related to new and upgraded energy infrastructure.
Also consider cooling your data center with natural air whenever possible to reduce power demand.
The company said the Louisiana facility will only use surplus water from the surrounding area, so there will be “no strain on local water supplies.” Amazon plans to invest up to $400 million in public water infrastructure to support the site.
Amazon said it will partner with data center developer Stack Infrastructure on the project.
WATCH: Amazon opens $11 billion AI data center in rural Indiana
