Amazon expands AI footprint with $10 billion data center investment in North Carolina

Amazon announced Wednesday a massive $10 billion investment plan to expand its data center operations in North Carolina, aiming to boost its artificial intelligence and cloud computing capabilities. The investment comes as tech companies race to build infrastructure for the growing demands of AI technology.

The project will create at least 500 high-skilled jobs, including data center engineers, network specialists, and security experts, the company said. According to Dr. Tevfik Kosar, director of the Data Intensive Distributed Computing Laboratory at the University at Buffalo, this investment is crucial for Amazon's competitive edge in AI computing.

"It's a very competitive race since the computational costs of state-of-the-art AI models increase at a rate of 1,000 times every three years," Dr. Kosar told ABC News. "This new deal is very important for Amazon to increase their crucial AI compute resources."

North Carolina Gov. Josh Stein welcomed the announcement.

"Artificial intelligence is changing the way we work and innovate, and I am pleased that North Carolina will stay at the forefront of all that's ahead as we continue to attract top technology companies like Amazon," he said.

The investment ranks among the largest in state history and is expected to bring an economic boost to Richmond County.

However, experts have warned of significant environmental challenges presented by AI data centers. Kosar pointed out that data centers of this scale typically require hundreds of megawatts of power—enough to supply a mid-sized town—and millions of gallons of water daily for cooling systems.

"These power and water demands can bring a significant load to North Carolina's natural resources," Kosar cautioned. "Any new investments in data centers should follow state-of-the-art sustainability practices and address the concerns of local communities."

David Zapolsky, Amazon's chief global affairs and legal officer, emphasized the company's commitment to the region.

"Amazon's $10 billion investment in North Carolina underscores our commitment to driving innovation and advancing the future of cloud computing and AI technologies," he said. "This investment will position North Carolina as a hub for cutting-edge technology, create hundreds of high-skilled jobs, and drive significant economic growth."

Amazon says it has maintained a strong presence in North Carolina for over a decade, investing $12 billion since 2010 and contributing $13.1 billion to the state's GDP. The company currently supports 24,000 full-time and part-time jobs, along with more than 26,000 indirect jobs in the state.

As part of the investment, Amazon announced several community initiatives, including support for local education through data center operations training programs and STEM education for K-12 students.

The company is also launching the Richmond County Community Fund, committing $150,000 for local community projects focusing on education, sustainability, and economic development.

Fengqi You, an energy engineering professor at Cornell University, sees the investment as potentially transformative for both the state and the company.

"This will bring thousands of high-quality jobs during both the construction and operational phases, spur local business growth, and attract further investments in technology and energy infrastructure," You said. "The scale of this project puts North Carolina on the map as a central hub for AI innovation in the U.S."

You also emphasized that the project could potentially set new environmental standards.

"If Amazon prioritizes renewable energy and energy-efficient designs, it can set a new standard for sustainable data center development—helping both the company and the region progress toward their climate and sustainability commitments," You said.