Amazon Plans Up To $50 Bln AI Infrastructure Buildout For U.S. Government

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(RTTNews) - Amazon (AMZN) said it will invest up to $50 billion to expand AI and high-performance computing capacity for U.S. government clients through Amazon Web Services.

The project, expected to break ground in 2026, will add about 1.3 gigawatts of new data center capacity dedicated to federal agencies.

The buildout will give government customers access to AWS AI tools, Anthropic's Claude models, Nvidia hardware, and Amazon's own Trainium chips. AWS said the investment will help agencies create custom AI systems, manage large datasets more efficiently, and improve workforce productivity. More than 11,000 government agencies currently use AWS.

The announcement comes as major tech firms compete to scale AI infrastructure across the U.S., with recent expansion plans from Anthropic, Meta, Oracle, OpenAI, and SoftBank's Stargate venture. Amazon has sharply increased its capital spending forecasts for 2025 as part of this broader AI push.

AWS chief Matt Garman said the investment removes long-standing technological barriers for federal agencies and strengthens the country's position in the AI race.

AMZN closed at $226.28, up 2.53%, and is trading after hours at $226.65, up 0.16%, on the NasdaqGS.