On Tuesday, Amazon Web Services (AWS), Amazon’s cloud computing division, announced its plan to invest “at least” $11 billion in Georgia. The goal is to expand its infrastructure to support various cloud computing and AI technologies. As a result of this investment, AWS estimates that around 550 new jobs will be created in the state.
“AWS is proud to expand our operations in Georgia to drive the next generation of cutting-edge technologies such as AI,” the company stated in a press release. “We appreciate the partnership with state and local leaders, and we are excited to keep Georgia at the forefront of the digital age.”
This investment by AWS in Georgia follows a similar move eight months ago when the company committed $11 billion to data centers in Indiana, promising to create at least 1,000 jobs. Georgia is increasingly becoming a hub for data centers, with a 76% year-over-year increase in data center construction in the Atlanta market alone by mid-2024.
The appeal of Georgia for Big Tech companies like AWS, Google, Meta, and Microsoft lies in factors such as inexpensive electricity, existing fiber-optic infrastructure, and state tax incentives. Microsoft, for instance, has bought hundreds of acres of land in the region to build a data center that is expected to cost around $1.8 billion.
However, the rapid construction of data centers in Georgia has raised concerns among locals who argue that it competes with housing and other critical real estate needs. Last September, the Atlanta city council implemented a ban on new data centers near transit and popular trails like the Beltline.
Data centers have considerable power requirements, resulting in utility Georgia Power relying partly on fossil fuels to meet the demand from current and future data centers. Environmental advocates have criticized this move. By 2028, the data center inventory in the Atlanta metro area is projected to grow to a power load exceeding 4,000 megawatts, over 30 times more than in 2012.
The boom in AI technology is the driving force behind many of today’s data center expansion projects. AI demands significant computing power for development and operation. Goldman Sachs predicts that AI will account for approximately 19% of data center power demand by 2028.
Companies investing in AI, like Microsoft, are committing substantial capital. Microsoft has announced plans to invest $80 billion in AI data centers this year. According to McKinsey, capital spending on the procurement and installation of mechanical and electrical systems for data centers could surpass $250 billion in the next five years.
