data center news
Amazon Web Services has announced plans to invest $35 billion to build new data centers across Virginia.
Parent company Amazon plans to invest $35 billion to build out data centers across Virginia to bolster its cloud computing capabilities and customer base, even as it lays off 18,000 employees. From the announcement, it’s clear that Amazon Web Services is a top priority.
Based in Seattle, Washington, AWS has invested more than $35 billion in Virginia alone since 2006, and AWS is investing another $35 billion to help Virginia, known as the Data Center Capital of the World. plans to enhance its cloud computing capabilities.
Roger Wehner, Director of Economic Development at AWS, said in a statement: “We plan to invest an additional $35 billion in Virginia by 2040 and create 1,000 jobs.”
[Related: 40,000 Tech Layoffs: Amazon Vs. Google Vs. Microsoft]
On pace to reach $100 billion in revenue this year, AWS has secured a project to work with state officials to expand its AWS data center investments to new locations in Virginia over the next 17 years.
New Mega Data Center Incentive Program. $140M AWS Grant
Virginia is very bullish on AWS’ expansion of its data center cloud, and the state is developing what it calls the Mega Data Center Incentive Program, which AWS is eligible for.
The state’s new mega data center incentive program includes an extension of data center sales and use tax exemptions for eligible equipment and enabling software for up to 15 years.
Additionally, AWS is eligible for custom performance grants of up to $140 million for site and infrastructure improvements, personnel development, and other project-related costs.
The data center incentive program is pending approval by the Virginia Legislature.
AWS expands data centers internationally
Along with fellow cloud hyperscalers Microsoft and Google, Amazon is one of the biggest spenders in building and equipping new data centers worldwide.
The goal of the world’s largest cloud computing companies is to build data centers that power local zones or local cloud regions. This will enable us to offer cloud services to thousands of customers in specific geographic regions. Placing cloud regions locally can reduce latency and data processing.
In January, AWS launched two new AWS Local Zones in Australia and Chile.
The two new cloud zones are located in the Perth metropolitan area, Australia. and Santiago, Chile.
AWS Local Zones allow customers to deploy applications that require single-digit millisecond latency to end users or on-premises data centers by placing AWS compute, storage, database, and other services in common locations. Allow to deploy.
AWS plans to launch 23 more Local Zones in metropolitan areas around the world.
Data center investments come during Amazon layoffs
The announcement of a $35 billion investment in Virginia and the launch of two new local zones overseas comes in the same month that parent company Amazon announced it would lay off 18,000 employees.
Amazon has approximately 1.5 million employees worldwide. That means 18,000 layoffs will affect him just over 1% of Amazon’s total workforce.
Regarding Amazon layoffs affecting AWS, a source told CRN that AWS is unlikely to see any significant layoffs.
The majority of role removals are done in Amazon stores and People, Experience and Technology (PXT) organizations. PXT is Amazon’s human resources division.