Amazon.com Inc. is sharply increasing its spending on artificial intelligence and data center infrastructure, committing tens of billions of dollars to expand cloud capacity as demand for AI computing accelerates across government and commercial markets.
The company’s cloud unit, Amazon Web Services, is leading the investments. Executives have said AWS will account for most Amazon’s capital spending over the next several years.
In November 2025, Amazon said AWS plans to invest up to $50 billion to expand AI and high-performance computing infrastructure for U.S. government customers. The spending will support new and expanded data centers across secure AWS regions that federal agencies use, including classified and national security workloads.
Amazon ranks No. 1 in Digital Commerce 360’s Top 2000 Database. The database is how Digital Commerce 360 tracks the largest North American online retailers by their annual ecommerce sales.
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How Amazon is increasing its AI and data center capacity
According to the company, the investment will add 1.3 gigawatts of power capacity, aimed at supporting AI model training, large-scale data analytics and advanced simulation workloads for agencies involved in defense, intelligence, cybersecurity and scientific research.
The announcement marked one of the largest publicly disclosed AI infrastructure commitments by a U.S. technology company and underscores the growing role of cloud providers in federal modernization efforts.
Alongside its government work, Amazon is also expanding its commercial cloud footprint. In 2025, the company announced plans to invest $15 billion in new data center campuses in Northern Indiana, a project to support AI and cloud workloads for enterprise customers.
Amazon said it expects the Indiana development to create more than 1,000 permanent jobs, in addition to thousands of construction and supply-chain roles. It’s building the facilities to support energy-intensive AI computing, reflecting the increasing power demands associated with large language models (LLMs) and machine learning applications.
Amazon has made similar announcements in other U.S. regions and internationally, though it has not provided a single, consolidated figure for total global AI-related data center spending.
Amazon capital expenditures related to AI
Amazon’s AI push is driving a broader surge in capital expenditures. Company executives have said Amazon’s total capital spending reached more than $100 billion in 2025, with AWS representing the largest share of that total. The spending covers data centers, servers, networking equipment and custom AI chips.
Chief financial officer Brian Olsavsky has said Amazon expects capital expenditures to remain elevated in 2026 as the company continues to expand cloud capacity to meet customer demand.
To help finance the build-out, Amazon returned to debt markets in 2025 with a $12 billion bond offering, one of its largest in recent years. The company said it will use the proceeds for general corporate purposes, including infrastructure investments.
Amazon’s spending comes as cloud competitors Microsoft and Google also pour billions into AI infrastructure, driving record levels of data center construction across the United States. The scale of investment has raised questions among investors about long-term returns, power availability and the pace at which AI services can generate sustained profit growth.
Still, Amazon executives have framed the spending as essential to maintaining AWS’s competitive position as AI becomes a core driver of cloud demand rather than a niche workload.
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