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23. December 2024
Amazon is committing another $10 billion to building new data centers in Ohio, part of a strategy to support AI demand and power its cloud computing unit, Amazon Web Services. The investments are expected to create over 1,000 jobs, with plans for the new facilities to be completed by the end of 2030.
The tech giant has announced plans to spend $75 billion on capital expenditures in 2024, primarily going towards cloud computing and data centers. Ohio Gov. Mike DeWine has hailed the investment as a major boost for the state’s economy and technology sector, citing the region’s growing reputation as “the Silicon Heartland.”
However, concerns have been raised about the environmental impact of the investments, with local utilities such as AEP Ohio reporting a surge in requests for power from data centers. This has led to calls for new transmission infrastructure projects and more stringent regulations on energy usage.
As Amazon expands its operations beyond Columbus, it will need to navigate the complex web of state and local tax incentives that make Ohio an attractive location for data center development. The company’s plans have sparked debate among corporate interests in Ohio, with some arguing that tariffs proposed by AEP Ohio could unfairly target data center customers.
The investments are part of a broader trend in the data center industry, which is rapidly expanding across the US as demand for cloud computing and AI grows. Other states, including Indiana and Mississippi, have also announced plans to build new data centers, highlighting the growing importance of the industry to the US economy.
Ohio has committed to spending over $23 billion on data centers in the state, with many major tech companies already establishing operations in the region. Amazon’s new facilities will play a key role in powering its push into AI, and as the company continues to expand, it will need to balance its growth ambitions with concerns about energy usage and environmental impact.