E-commerce giant Amazon (AMZN) said that it plans to invest $11 billion to expand its infrastructure in Georgia to support cloud computing and artificial intelligence (AI) technologies related to its cloud computing unit, Amazon Web Services (AWS).
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Like other big tech companies, Amazon needs to develop data centers and advanced infrastructure to support its AI innovations and cloud services. Recently, Microsoft (MSFT) announced plans to spend $80 billion to develop data centers for training AI models and deploying cloud-based applications.
AI applications and models require huge computing power and energy resources. This is driving unprecedented demand for data centers that enable technology companies such as Amazon to link thousands of microchips and processors in clusters.
Big Investments
In a statement, Amazon said that its investment in the State of Georgia will, “…create hundreds of jobs and enhance Georgia’s position as a hub for cutting-edge digital innovation.” Amazon noted that the new data centers and related infrastructure are expected to create “at least 550 new high-skilled jobs.”
The rise in AI and cloud computing growth has also driven a significant increase in U.S. electricity consumption, as data centers consume vast amounts of power. Amazon has said that it has secured multiple agreements with U.S. utilities to supply power to its data centers nationwide.
AMZN Stock has increased 49% in the past 12 months.
Is AMZN Stock a Buy?
The stock of Amazon has a consensus Strong Buy rating among 47 Wall Street analysts. That rating is based on 46 Buy and one Hold recommendations issued in the last three months. The average price target on AMZN stock of $249.62 implies 12.15% upside from current levels.
