Benzinga - by Anusuya Lahiri, Benzinga Editor.
Amazon.Com Inc. ‘s (NASDAQ:AMZN) Amazon Web Services (AWS) plans to invest $11 billion to establish a data center campus in north central Indiana, creating at least 1,000 new jobs, as announced Thursday by Governor Eric J. Holcomb, chairman of the Indiana Economic Development Corporation.
Amazon.Com’s cloud unit’s investment is Indiana’s most significant capital investment announcement.
The upcoming data centers will house essential cloud computing infrastructure, including computer servers, data storage drives, networking equipment, and support generative artificial intelligence (AI) technologies.
Also Read: Amazon Aims to Outdo Walmart’s Retail Game, Boosts Cashierless Tech in Stores
The Indiana Economic Development Corporation (IEDC) has committed to supporting AWS with data center sales tax exemptions for eligible capital investments over a 50-year term.
Amazon.com is also setting up cloud regions in Southeast Asia due to customer demands for secure local data storage.
AWS led the global cloud service market in the fourth quarter, securing 31% of total cloud spending.
Analysts have noted Amazon’s dominant position in generative AI, foreseeing significant benefits from its AI chip development and diverse large language model offerings.
They also highlighted AWS’s expected growth, which includes a $545 million quarter-over-quarter increase and a 16% year-over-year rise, marginally exceeding the market’s 15% expectation.
Ammazon.Com stock gained over 66% in the last 12 months. Investors can gain exposure to the stock via SPDR Select Sector Fund – Consumer Discretionary (NYSE:XLY) and ProShares Online Retail ETF (NYSE:ONLN).
Price Action: AMZN shares traded lower by 2.53% at $172.12 at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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