Amazon invests $20 billion in Pennsylvania, doubling down on its artificial intelligence (AI) strategy.

CN
12 days ago

Amazon plans to invest $20 billion in Pennsylvania, USA, to build two new data centers to expand its AI infrastructure.

According to a statement released by Amazon on June 9, the exact locations of these data centers have not yet been finalized, with Salem Township and Falls Township being the main candidates, but other communities in Pennsylvania are also under consideration.

This year, competition in the AI sector among companies has intensified. Reports indicate that Meta planned to build a data center campus dedicated to AI projects as early as February, while OpenAI announced in January that it would invest $500 billion over the next four years to develop new AI infrastructure.

In addition to the data centers, Amazon stated that it has established partnerships with educational institutions and workforce organizations in Pennsylvania to create training centers that support career development in cloud computing infrastructure.

These training and educational programs are expected to include data center technician training courses, fiber optic splicing technology workshops, and STEM awareness and learning opportunities for K-12 schools.

Amazon stated that its investment initiatives aim to ensure that the U.S. maintains its leading position in the rapidly evolving AI competition.

"Our strategic investments in advanced computing infrastructure and specialized AI hardware are building the technological foundation for the next generation of generative AI and agent AI, and helping to ensure America's leadership at the forefront of global innovation," Amazon said.

The tech giant also made a similar commitment to North Carolina on June 4, investing $10 billion to expand its data center infrastructure to support AI and cloud computing technologies.

U.S. companies have begun to accelerate their expansion in the AI field. On May 29, social media giant Meta joined the ranks of companies developing AI-driven technologies for the U.S. military, signing agreements to develop AI-driven virtual and augmented reality equipment.

Meanwhile, NVIDIA CEO Jensen Huang stated in November that his company is committed to maintaining a leading position in the agent AI field, while Microsoft announced in September that it would establish two AI centers in Abu Dhabi.

Bitcoin (BTC) mining companies have also begun to diversify their revenue sources, including in the AI sector, shifting part of their cryptocurrency mining operations to run compute-intensive large language models.

Riot Platforms appointed three new directors to its board in February, one of whom has expertise in transitioning Bitcoin mining assets to HPC (high-performance computing). Hive Digital, Hut 8, and Iris Energy have already shifted part of their operations to the HPC and AI sectors last year.

TeraWulf sold its stake in a Bitcoin mining facility for $92 million in October, with the funds to be used for hosting AI and building HPC data centers.

In a report released in August, asset management firm VanEck estimated that if publicly traded Bitcoin mining companies redirect 20% of their energy capacity to AI and HPC by 2027, they could potentially increase their annual profits by an additional $13.9 billion over 13 years.

Related: Bitcoin and U.S. crypto stocks rise as more companies plan to purchase BTC

Original article: “Amazon Invests $20 Billion in Pennsylvania, Doubling Down on AI Strategy”

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