Amazon Pledges $20 Billion for Pennsylvania Data Centers

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Amazon (NASDAQ:AMZN) is set to pour $20 billion into Pennsylvania for new AWS data-center campuses, fueling its AI and cloud ambitions while creating over 1,250 high-skilled jobs.

The first two innovation hubs will rise in Luzerne and Bucks countiesSalem and Falls townships respectivelywith additional sites under review, Governor Josh Shapiro said. Since 2010, Amazon has plowed more than $26 billion into Pennsylvania infrastructure and payroll, generating 27,000 direct jobs.

This latest boost will also support thousands of roles across the AWS data-center supply chain and is paired with a $250,000 Amazon Northeastern Pennsylvania Community Fund for STEM, sustainability, digital skills, culture and health grants.

One Luzerne facility sits alongside the Susquehanna nuclear plant owned by Talen Energy; Amazon's $650 million purchase of that site to tap up to 960 MW has drawn FERC scrutiny over grid-fairness and power allocation issuesthe first such case before the commission.

Amazon and Talen must address concerns that shifting power to data centers could disadvantage other consumers and skirt grid-use fees. Amazon didn't immediately comment on FERC's review.

Tech peers like Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) are also investing billions in AI-ready data centers, but Amazon's Pennsylvania commitment stands out for its scale and local job impact.

Why It Matters: Amazon's massive spend underscores the critical role of hyperscale data centers in supporting AI growth and confirms Pennsylvania's emergence as a cloud-computing hub.

This article first appeared on GuruFocus.