Amazon (AMZN.US ) invests $12 billion in Louisiana to build data centers to meet cloud computing and AI demands.

Bloomberg News has learned that Amazon (AMZN.US) announced on Monday that it will invest $12 billion to build its first data center facilities in Louisiana, USA, to support its cloud computing and artificial intelligence businesses.

Large-scale cloud service providers in the US are competing for dominance and investing hundreds of billions of dollars in data center infrastructure to enhance computing capacity—crucial for supporting AI development.

Amazon previously announced that it would invest up to $200 billion this year, mainly for its AWS division, to meet strong AI workload demands. Meanwhile, Meta Platforms (META.US) has increased capital expenditures by 73%-75%, reaching $115 billion to $135 billion, primarily for building its AI infrastructure. Tech giants like Google (GOOGL.US) have also announced higher capital expenditure budgets for this year.

Amazon’s move to invest in Louisiana closely resembles the actions of its competitor Meta—Meta is building one of its largest data centers in the state. Due to significant tax incentives, lower electricity prices, and a reliable power grid, Louisiana has become a popular region for AI infrastructure projects. Data center investments have accounted for more than one-third of the $61 billion in total capital investments attracted by the state through 2025.

Amazon stated that this investment will create approximately 540 on-site jobs and support about 1,700 jobs in the community overall. The company will hold a groundbreaking ceremony for the project in the coming weeks.