Amazon (AMZN) cloud computing unit, AWS, has committed $17.9 million (€17.2 million) to an AI-powered project to prevent flood risks in Spain’s northeastern Aragon region. As the company constructs data centers in the area, it plans to leverage advanced technology to predict and manage flooding in a region that has experienced severe incidents in recent years. The project will help protect 700,000 people in Zaragoza city from floods, upgrade key infrastructure, and use AI to improve water management for farming.
More Details on the Project
The project will use data from weather stations, river sensors, and satellites to power AI-driven early warnings. The system will monitor key waterways, including the Ebro River, which has caused significant flooding in the past. When the AI detects dangerous conditions, it will automatically generate alerts for emergency services and send notifications to residents through a dedicated app.
With this project, Amazon is expanding its efforts in Aragon by adding three new water projects, bringing the total to five. The company has two ongoing initiatives that began in 2023.
Amazon’s Growing AI Focus
This flood prevention project is part of Amazon’s broader push into AI applications beyond its core retail business. The company has been investing heavily in AI research and development, applying these technologies to solve complex problems across various sectors. From healthcare diagnostics to climate change mitigation, Amazon aims to position itself as a leader in practical AI applications that address real-world challenges.
Recently, AWS announced a partnership with UK-based publishing group Pearson (GB:PSON) to advance AI-driven education in schools, colleges, and workplaces.
The Aragon project could serve as a test case for similar initiatives in other flood-prone regions. If successful, Amazon could expand the program to other parts of Spain and potentially to other European countries facing similar flood risks.
Is Amazon a Buy, Hold, or Sell?
According to TipRanks, AMZN stock has a Strong Buy consensus rating based on 47 Buys and one Hold assigned in the last three months. At $268.91, the Amazon average share price target implies an upside of 27% from the current level.
Year-to-date, AMZN stock has declined by over 3%.
