Amazon.com, Inc. (NASDAQ:AMZN) is set to invest $20 billion into building two new data centers in Pennsylvania. Governor Josh Shapiro was joined by company officials on Monday to announce the facilities.
What Happened: The data centers will be established in two different locations: one in Salem Township next to the Susquehanna nuclear power plant and another in Falls Township on the site of a former steel mill.
Governor Shapiro hailed the move as a milestone in the state's role in national development. "Pennsylvania workers, over decades, over centuries, have made our Commonwealth and our country safer and freer, and what we are talking about here today is yet another national security issue that Pennsylvania can lead on."
He added, "See right now, there is a battle for supremacy when it comes to AI, a battle that will be won by either the United States or China. I'm comforted by the fact that thanks to Amazon, the future of AI is going to run right here through the Commonwealth of Pennsylvania."
See Also: OpenAI Surges Past $10 Billion In Annualized Revenue Amid Record ChatGPT Use, Leaves Rivals Like Amazon-Backed Anthropic Behind
Why It Matters: The announcement comes as tech giants race against rivals, both foreign and domestic, to develop advanced AI infrastructure. In January, President Donald Trump announced the Stargate project, in collaboration with OpenAI, SoftBank and Oracle, aiming to invest $500 billion in U.S.-based AI infrastructure projects in the next four years.
Notably, the rapid development of AI comes with a growing demand for energy.
Amazon has faced regulatory hurdles in its bid to increase power supply to its new data center adjacent to the Susquehanna nuclear plant. In November, the Federal Energy Regulatory Commission (FERC) denied the company's request to modify an existing agreement to add 180 megawatts of capacity, and stood by that decision in April.
Last week, Amazon announced plans to invest $10 billion in North Carolina data center infrastructure.
Price Action: Amazon stock closed at $216.98 on Monday, up 1.60% for the day. In after-hours trading, the stock rose to $217.05, up 0.03%.
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