E-commerce and cloud computing giant Amazon (AMZN) is strengthening its artificial intelligence (AI) growth story with massive strategic investments. The company announced its plan to invest $15 billion in Northern Indiana to build data center campuses that will support AI and cloud computing technologies.
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Separately, on Thursday, AMZN announced that its Amazon Web Services (AWS) cloud unit will invest up to $50 billion to expand AI and supercomputing capabilities for U.S. government customers.
Amazon Commits $15B to Northern Indiana Data Center Infrastructure
Amazon said that its $15 billion investment will add 2.4 gigawatts of data center capacity in Northern Indiana. The company highlighted that through this investment, it will create 1,100 new high-skilled jobs in the region while supporting thousands of other jobs in the data center supply chain.
The company’s Northern Indiana investment involves an energy agreement with NIPSCO, one of Indiana’s leading natural gas and electric companies. The project is expected to generate $1 billion in cost savings to current Indiana residents and businesses over 15 years.
It is worth noting that this $15 billion investment is in addition to the previously announced $11 billion investment. Amazon has invested more than $31.3 billion in Indiana since 2010.
Cloud companies are investing heavily to boost their capacity and support massive AI workloads. Amazon’s AWS is facing intense competition from Microsoft’s (MSFT) Azure and Alphabet’s Google Cloud (GOOGL) to capture AI-led growth opportunities.
Is Amazon Stock a Buy, Hold, or Sell?
Given robust AI tailwinds, Wall Street has a Strong Buy consensus rating on Amazon stock based on 41 Buys and two Holds. The average AMZN stock price target of $294.97 indicates 30.4% upside potential. Amazon stock has risen 3% year-to-date.
