E-commerce giant Amazon (AMZN) plans to spend $4.4 billion building new artificial intelligence (AI) data centers in New Zealand.
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The Seattle-based technology giant is making the investment through its Amazon Web Services (AWS) cloud computing unit. In a press release, the New Zealand government said it is “the largest ever publicly announced technology investment” in the country’s history and could have an “impact on our GDP.”
Amazon’s data center project in New Zealand is also expected to create 1,000 construction, technology, and utility jobs in the country. New Zealand Prime Minister Christopher Luxon praised the investment by Amazon, which is a major shot in the arm to the country’s economy.
15-Year Timeline
Amazon has said that its $4.4 billion investment in New Zealand will be made over the next 15 years and result in a cluster of at least three data centers in the country. Part of Amazon’s investment includes the costs to operate the data centers once they’re completed.
The investment also includes costs such as the power and water bills related to the operation of the data centers. The buildout in New Zealand is part of Amazon’s broader investments in AI. The company has earmarked $118 billion in capital expenditures for 2025, with most of that money going to AI infrastructure and technology.
Is AMZN Stock a Buy?
AMZN stock has a consensus Strong Buy rating among 45 Wall Street analysts. That rating is based on 44 Buy and one Hold recommendations assigned in the last three months. The average AMZN price target of $264.13 implies 17.27% upside from current levels.
