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Amazon to launch $10B data center upgrade in North Carolina

As Amazon races to compete with Big Tech rivals for AI dominance, its Tar Heel State investment is part of a $100 billion capital expenditure effort slated for 2025.

Shane Snider
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Published: 04 Jun 2025

Amazon on Wednesday said it would invest $10 billion to expand data center infrastructure in North Carolina to boost artificial intelligence and cloud computing technology, including plans to build a 20-building campus.

The company said its investment would support AI initiatives creating 500 new high-skilled jobs. Amazon has already invested $12 billion in North Carolina, supporting 24,000 full- and part-time jobs directly.

During the company's fourth-quarter earnings call in February, Amazon CEO Andy Jassy said the company planned to boost capital expenditures to $100 billion this year, mostly in AI investments. AWS is the current market leader as a cloud provider, with stiff competition from Google Cloud Platform, Microsoft Azure and others jockeying for position in the AI race.

"We don't procure it unless we see significant signals of demand," Jassy said during the call. "And so, when AWS is expanding its Capex, particularly in what we think is one of these once-in-a-lifetime type of business opportunities like AI represents, I think it's actually quite a good sign, medium to long term, for the AWS business."

Alan Howard, principal analyst for data centers and colocation services in the data research practice at Omdia, a division of Informa TechTarget, said Amazon is creating partnerships with states as part of a broader data center strategy.

"Amazon has been at this game for a long time," he said. "When they move to a community with a data center footprint, it can be rather significant ... They've learned that the road is much less bumpy if they approach the market as a partner, investing not just in infrastructure and jobs, but supporting the community with programs, renewable energy projects and other forms of just being a good neighbor."

Howard added, "Many data center companies need to take this kind of approach to market entrance appropriate to their scale."

Adding to N.C. tech center

North Carolina is home to a thriving tech sector, with Raleigh and the Research Triangle Park attracting significant tech job growth in recent years.

Amazon said its previous investments in North Carolina have brought $13.1 billion to the state's gross domestic product, according to a blog post. Amazon does not disclose the number of data centers currently in the state, but the company has been actively investing in North Carolina since 2010.

As part of the latest investment, the company said it plans to support workforce development training programs with data center technician programs and STEM initiatives aimed at K-12 schools. Jobs supported by the investment will include data center engineers, network specialists, engineering operations managers, security specialists and other technical roles, Amazon said.

"The additional high-tech investments and the need for advanced STEM skills is a perfect fit," said Marc Hoit, vice chancellor for information technology and CIO of North Carolina State University, in an email interview. "We look forward to supporting Amazon's growth and investment in N.C."

Brooks Raiford, CEO of the North Carolina Technology Association (NC Tech), said Amazon's data center play will have a big impact in the state.

"The Amazon announcement furthers North Carolina's reputation as a leading region for data centers and artificial intelligence," he said. "It's exciting to see their plans to engage with educational institutions and workforce development organizations."

NC Tech's latest state-of-the-industry report showed that as of 2023, the technology industry employed more than 323,000 of North Carolina's 4.8 million workers, or 6.7%. The state was ranked eighth nationwide in tech industry employment growth from 2018 to 2023, according to the report.

Shane Snider, a veteran journalist with more than 20 years of experience, covers IT infrastructure at Informa TechTarget.

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