What’s going on?

Amazon plans to spend almost $150bn on data centers, committed to leading the AI charge.

What does this mean?

• Determined to be the go-to computing power for AI, Amazon plans to spend nearly $150bn on data centers in the next 15 years
• The usage includes setting up centers in the US, Saudi Arabia, and Malaysia, building up worldwide coverage as an edge over Microsoft and Alphabet in the cloud services market.

Why should I care?

The bigger picture: The AI empire is being built up

• Amazon will rely on industry experts as it expands its data empire, including companies that design and produce chips (e.g: Nvidia and Applied Materials), and companies that specialize in infrastructure and networking equipment (e.g: Vertiv – supplier of complex infrastructure systems, including a powerful liquid cooling technology that keeps servers from overheating).
• Many companies involved in building AI-focused data centers have seen their share prices increase as a reward for their work.

Zooming out: Also don’t forget the green part

• Goldman Sachs believes there are early signs that those embracing the tech are already becoming 25% more productive on average. Amazon will need to be prepared for when everyone also joins the game.
• Amazon’s existing data centers have already made it the biggest business buyer of renewable energy – showing its effort to fuel business with only renewable energy by 2025 as a pledge.

Content source: 
1. Finimize (2024) Front And Center
. Available at: https://www.go.finimize.com/wp/news/front-and-center/ [Accessed on Apr 7, 2024]