Amazon (AMZN-2.87%) announced on Monday that it will invest at least $20 billion in Pennsylvania to build two data centers as it expands its cloud computing infrastructure and advances AI.
The retail giant said the new initiatives will create 1,250 high-skilled jobs while “supporting thousands more in the AWS data center supply chain.”
It identified Salem Township, in Luzerne County, and Falls Township, a suburb of Philadelphia, as the first two locations for the development of its ”future innovation campuses,” and said many other areas are under consideration. It did not give a timeline for the project.
The new jobs created by the investment will include data center engineers, network specialists, engineering operations managers, and security specialists, among others. Amazon will also invest in workforce development programs in the communities to help train future employees, the company said.
David Zapolsky, Amazon’s chief global affairs and legal officer, said in a press release that the plan “reinforces our dedication to advancing AI innovation while creating lasting economic opportunities in the state.”
Pennsylvania Governor Josh Shapiro said that “this initial investment from Amazon will create thousands of good-paying, stable jobs.”
“We’re creating opportunity for our workers, generating new revenue for our local communities, and ensuring the future of AI runs right through Pennsylvania,” he added.
The plan is part of Amazon’s continued investment in artificial intelligence, which the company says shows its “commitment to supporting U.S. leadership in AI.”
But the plan is not without controversy. It comes as big tech companies like Amazon, Microsoft (MSFT-0.92%), and Meta are searching for power sources that can keep up with AI’s energy needs. The Salem Township data center will be built next to the Susquehanna nuclear power plant, where Amazon wants to plug in its data center directly to expedite the process.
Last year, Talen Energy, which controls the Susquehanna plant, sold Amazon its data center next door for $650 million. Amazon secured 40% of the plant’s output as part of the deal, offering to pay more for the energy than the utility, according to the Associated Press. But the Federal Energy Regulatory Commission is holding up the arrangement, investigating whether or not it’s fair to hand over the energy output to the highest bidder and if it will deprive local households of the energy they need.
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