Amazon plans $12 billion Louisiana data center buildout

By Greg Bensinger

SAN FRANCISCO, ‌Feb 23 (Reuters) - Amazon said ​it ​expects to invest $12 billion in Louisiana as part of a plan to build data centers in the Pelican State.

The Seattle-based online ‌retailer said the data center buildout, in northwest Louisiana, will ⁠create 540 full-time jobs, as well as additional jobs it claims will help support ‌the facilities, such as electricians ‌and heating, ventilation and air-conditioning technicians.

As part of its fourth-quarter earnings report this month, Amazon announced an expected $200 billion this year in ​capital expenditures, a sharp increase from 2025's $131 billion. Its shares fell after that announcement. They are down 9.4% year to date, including ⁠a 2.3% drop on Monday to $205.27.

Tech firms' outlays have skyrocketed as they work to meet growing demand ​for artificial intelligence software, computer chips and other infrastructure. The companies have committed at least $630 billion this year, and some ​investors fear a growing AI-led bubble.

Some ‌communities have pushed back against data center development due to strains on local power grids, as well as the ⁠need for huge amounts of water needed to the equipment.

Amazon said it will help offset any impacts of the Louisiana facilities with a $400 million fund aimed ⁠at water infrastructure in the area and said it will only use water for ​cooling and other needs.

The company said it will assume "100% of the costs" of the Louisiana data centers and is working with Southwestern Electric Power Company on any ‌electrical infrastructure needed.

Responding to a request for clarification about whether the $12 billion Louisiana commitment is part of a $200 ‌billion investment that the company unveiled earlier this month, a spokesperson said: "We regularly ⁠make investment announcements at the ‌federal, state, and local ​level and those investments often occur over many years."

(Reporting by Greg Bensinger; Editing by Chizu Nomiyama, David Gregorio and ‌Thomas Derpinghaus)

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