By Greg Bensinger
SAN FRANCISCO, Feb 23 (Reuters) – Amazon said it expects to invest $12 billion in Louisiana as part of a plan to build data centers in the Pelican State.
The Seattle-based online retailer said the data center buildout, in northwest Louisiana, will create 540 full-time jobs, as well as additional jobs it claims will help support the facilities, such as electricians and heating, ventilation and air-conditioning technicians.
As part of its fourth-quarter earnings report this month, Amazon announced an expected $200 billion this year in capital expenditures, a sharp increase from 2025’s $131 billion. Its shares fell after that announcement. They were down 9% year to date and fell another 2.7% on Monday to $204.47.
Tech firms’ outlays have skyrocketed as they work to meet growing demand for artificial intelligence software, computer chips and other infrastructure. The companies have committed at least $630 billion this year, and some investors fear a growing AI-led bubble.
Some communities have pushed back against data center development due to strains on local power grids, as well as the need for huge amounts of water needed to the equipment.
Amazon said it will help offset any impacts of the Louisiana facilities with a $400 million fund aimed at water infrastructure in the area and said it will only use water for cooling and other needs.
The company said it will assume “100% of the costs” of the Louisiana data centers and is working with Southwestern Electric Power Company on any electrical infrastructure needed.
Amazon did not respond to a request for clarification about whether the $12 billion Louisiana commitment is part of the $200 billion it announced earlier this month.
(Reporting by Greg Bensinger; Editing by Chizu Nomiyama and David Gregorio)
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