Battle for data centers: AWS invests $11 billion in Georgia, AI is unstoppable!

Amazon's cloud computing arm, Amazon Web Services (AWS), recently announced plans to invest at least $11 billion in Georgia to expand its data center infrastructure and support the development of various cloud computing and artificial intelligence technologies. AWS expects this investment to create approximately 550 jobs in Georgia.

In a press release, AWS said: "We are proud to expand our presence in Georgia to advance the next generation of cutting-edge technologies, such as artificial intelligence. We are grateful for the partnership of state and local leaders and look forward to working with the state of Georgia Staying ahead of the curve in the digital age.”

The announcement of the investment comes less than eight months after AWS made a similar $11 billion investment in Indiana that promises to create at least 1,000 jobs. Georgia is becoming a popular location for data centers. According to a report, by mid-2024, the year-on-year growth in data center construction in the Atlanta market has reached 76%.

Atlanta's low electricity costs, existing fiber optic infrastructure and state tax incentives have led big tech companies such as Google, Meta, Elon Musk's X and Microsoft to make infrastructure investments in the area. In 2023, Microsoft also purchased hundreds of acres of land and planned to build a data center expected to cost approximately $1.8 billion.

However, local residents are not entirely happy with the development, which they see as competing with housing and other more pressing real estate needs. Last September, the Atlanta City Council banned new data centers in neighborhoods close to traffic and the popular Beltline Trail.

In addition, data centers often require large amounts of power supplies. Georgia Power is relying on some fossil fuels to meet current and future data center power needs, a practice that has also been criticized by environmental advocates. According to real estate data firm Green Street, Atlanta-area data center power load may grow to more than 4,000 megawatts by 2028, a figure that is more than 30 times the area's data center load in 2012.

The rapid development of artificial intelligence is the main reason driving today’s data center expansion projects. According to Goldman Sachs estimates, AI will account for about 19% of data center power needs by 2028. At the same time, AI companies are willing to make huge investments. Microsoft recently stated that it expects to invest US$80 billion in artificial intelligence data centers this year. According to a McKinsey report, capital expenditures for the procurement and installation of data center mechanical and electrical systems could exceed $250 billion over the next five years.