Jun 27, 2023 - Business

Amazon Web Services investing $7.8 billion in new data centers

Logos for Amazon and its subsidiary Amazon Web Services.

Photo: Chesnot/Getty Images

Amazon is the latest tech giant to announce a major expansion in central Ohio.

What's happening: Its subsidiary Amazon Web Services (AWS) plans to invest $7.8 billion toward expanding its data center operations here over the next handful of years.

  • AWS provides cloud computing and storage to businesses and lately started hosting generative AI systems.

Why it matters: This marks the second-biggest private-sector investment in state history, behind only Intel's $20 billion chip plants.

The big picture: The Amazon announcement is further proof our region has become a key Midwest tech hub, particularly for data centers.

  • Google and Meta are already building more data centers of their own.

State of play: Project sites were not announced, though Amazon recently bought hundreds of acres of land in New Albany for potential construction.

  • Amazon already operates data centers in Franklin and Licking counties that employ nearly 1,000 workers, per a news release from Gov. Mike DeWine's office.
  • The forthcoming expansion is expected to create 230 more jobs.

Of note: The news release states a number of economic development teams are supporting the project, including One Columbus and JobsOhio.

  • The state incentive includes a "job creation tax credit" worth just shy of $900,000, an Ohio Department of Development spokesperson told Axios.

What they're saying: The project "further cements Ohio as the heart of our nation's technology and innovation," DeWine said.

  • "As more of the world relies on cloud computing, this investment will build on Amazon's current infrastructure in Ohio to help new and existing businesses grow, allow residents to securely connect to friends and family, and provide access to online educational resources and entertainment."

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