Amazon announced it plans to make a massive investment in artificial intelligence this year.
The e-commerce giant intends to increase capital expenditures to a dizzying $100 billion. This would represent a sizeable jump from the already lofty $83 billion capex Amazon recorded in 2024.
“We spent $26.3 billion in capex in Q4, and I think that is reasonably representative of what you expect an annualized capex rate in 2025,” Amazon CEO Andy Jassy said on a fourth-quarter earnings call with investors, per CNBC.
“The vast majority of that capex spend is on AI for AWS,” he said, referring to the company’s on-demand cloud computing arm.
Last year, The Dallas Express reported that Amazon plans to spend nearly $150 billion on data centers over the next 15 years alone. The investment is in anticipation of the continued demand for growth in resource-intensive AI.
Amazon will join other big tech names in dropping billions of dollars into artificial intelligence.
Google’s parent company, Alphabet, said it plans to spend around $75 billion this year, while Microsoft said it plans to spend $80 billion in fiscal 2025 on data center bailouts to support AI. Meta, too, announced it will spend upwards of $65 billion this year.
A portion of these spends will likely end up in the Lone Star State.
North Texas, in particular, has been at the heart of data center growth, experiencing an explosion of builds. A report released last November ranked the Dallas-Fort Worth area second in the nation for data center use, clocking 776 megawatts of leased critical IT power capacity.
In 2024, Google announced plans to invest more than $1 billion in Texas by the end of 2024, including nearly $600 million to support its Red Oak data center.
Microsoft Corp. and Kansas-based QTS Realty Trust LLC announced in December that they were building over one million new square feet of data center space in North Texas. Microsoft is expected to construct four of the seven facilities located in Irving.