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 will invest up to $50 billion to expand its cloud division’s ability to deliver artificial intelligence and high-performance computing capabilities to U.S. government customers.
The project is expected to break ground in 2026 and will add nearly 1.3 gigawatts of capacity through a new data center designed for federal agencies, the company said in a blog post.
As part of the investment, the agency will use Amazon Web Services’ AI tools, Anthropic’s Claude family of models, and Nvidia chip and Amazon’s custom Trainium AI chip.
This movement is anthropic and meta Expanding AI data center in the US oracle,OpenAI, Softbank announced its Stargate joint venture in January, aiming to invest up to $500 billion in U.S. AI infrastructure over the next four years.
AWS said the project will enable government agencies to develop custom AI solutions, optimize data sets and “improve employee productivity.” Amazon said Monday that AWS serves more than 11,000 government agencies.
“This investment removes technology barriers that have held governments back and positions the United States to further lead in the age of AI,” AWS CEO Matt Garman said in a statement.
Technology companies have spent billions of dollars in the race to build enough capacity to power AI services. In October, Amazon raised its forecast for capital spending this year, saying it expected to spend $125 billion in 2025, up from its previous forecast of $118 billion.
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