Amazon Allocates $12 Billion for AI Data Centers in Louisiana

• Amazon's total AI spending is expected to reach $200 billion in 2026, exceeding all other hyperscalers and contributing to a combined $700 billion industry expenditure
• The company will pay 100% of costs for new energy infrastructure and invest up to $400 million in public water infrastructure, using only surplus water to address local resource concerns
• Amazon's stock declined for nine consecutive days following its February earnings report, losing over $450 billion in market value as Wall Street reacted skeptically to the massive capital expenditure plans

Summary: Amazon Allocates $12 Billion for AI Data Centers in Louisiana

Key Investment Details:

Amazon announced plans to invest $12 billion in new artificial intelligence data center campuses in Louisiana's Caddo and Bossier Parishes in the northwestern region. The project will create 540 full-time jobs and support approximately 1,700 additional roles including electricians, HVAC technicians, and security specialists.

Broader AI Spending Context:

This investment is part of Amazon's massive $200 billion AI expenditure planned for this year—the highest among hyperscale cloud providers. Combined, major tech companies are forecasting nearly $700 billion in AI-related capital expenditures for 2026, primarily for data centers, chips, and networking equipment.

Market Reaction:

Wall Street has responded skeptically to Amazon's aggressive capex plans. Following its February 5 earnings report, Amazon stock declined for nine consecutive days, erasing over $450 billion in market value.

Competitive Landscape:

Tech giants including Microsoft and Google are racing to expand data center infrastructure to support growing AI model deployment demands. Meta and Microsoft have also selected Louisiana for a $27 billion joint venture data center project.

Community and Environmental Considerations:

Amazon addressed local concerns by committing to pay 100% of energy infrastructure costs through partnerships with Southwestern Electric Power Company. The company plans to utilize natural air cooling when possible and will use only surplus water, investing up to $400 million in public water infrastructure to avoid straining local resources.

Amazon is partnering with Stack Infrastructure on the development project.