AWS Continues to Add Data Centers to Meet Demand for AI | PYMNTS.com

Amazon Web Services (AWS) is reportedly continuing to add data centers after opening a cluster of them in Mexico earlier this year.

The company is building new facilities in Chile, New Zealand, Saudi Arabia and Taiwan, AWS CEO Matt Garman said, per a Friday (May 30) Bloomberg News report.

As it works to increase its capacity to power artificial intelligence, AWS also aims to expand its stock of Nvidia’s latest semiconductor, the GB200, according to the report.

“Demand is strong,” Garman said.

PYMNTS reported in April that Kevin Miller, vice president of global data centers at AWS, said in a LinkedIn post that the company continues to see “strong demand for both generative AI and foundational workloads.”

At the time of that report, AWS had 114 availability zones and plans for 12 more in 36 global regions that serve 245 countries and territories. An AWS spokesperson told PYMNTS in April that availability zones refer to a cluster of one or more discrete data centers. AWS does not disclose its actual data center count.

In January, AWS said it plans to invest at least $11 billion in Georgia to expand infrastructure to support cloud computing and AI.

“AWS’s ongoing infrastructure investments across the United States demonstrate our relentless commitment to powering our customers’ digital innovation through cloud and AI technologies,” Roger Wehner, vice president of economic development at AWS, said at the time in a press release.

The server market is expected to hit $1.3 trillion by 2028, according to a January report by IDC. The biggest builders of data centers include Amazon, Microsoft and Google Cloud as well as data center companies Digital Realty and Equinix.

AI data centers are needed because traditional data centers and power grids are struggling to accommodate the intense computational power, data storage and energy required by AI.

It was reported May 21 that one of OpenAI’s future data centers secured $11.6 billion in funding commitments. The center, which is being constructed in the Texas community of Abilene, is slated for completion next year and is set to become the ChatGPT maker’s largest.

In March, xAI and Nvidia joined a $30 billion AI infrastructure project called the AI Infrastructure Fund, which is backed by BlackRock, Microsoft and MGX.

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