Amazon (NASDAQ: AMZN) is ramping up its investments in artificial intelligence infrastructure with a major $10 billion commitment to build new data centers in North Carolina. This move is part of the tech giant’s broader $100 billion capital expenditure plan for 2025, signaling its serious push to lead in the AI space.
The new data centers will support Amazon Web Services (AWS), the company’s cloud computing division that powers a vast array of AI, machine learning, and high-performance computing workloads. CEO Andy Jassy has called generative AI a “once-in-a-lifetime business opportunity,” reflecting the company’s focus on expanding AI capabilities.
Amazon’s stock has been forming a strong technical setup, nearing a buy point around $214.84, after breaking key trendlines earlier this year. The company remains a key player in the so-called Magnificent Seven stocks that dominate the tech sector.
While the stock shows solid momentum, it faces some headwinds from global tariffs that could impact operations. Still, Amazon’s continued growth in AWS and aggressive data center investments highlight its long-term growth prospects.
Amazon also announced plans to invest over $5 billion in data centers in Taiwan, aiming to open a new cloud region to better serve international customers.
Analysts remain optimistic, with Amazon posting strong earnings growth over recent quarters. Despite expectations for a moderate slowdown in the near term, the stock’s composite rating remains high, reflecting confidence in its growth story.
As AI continues to reshape the tech landscape, Amazon’s heavy investments in infrastructure position it well to capitalize on rising demand for cloud and AI services.