Amazon Commits $12 B to Northwest Louisiana Data‑Center Campus, SWEPCO to Upgrade Grid at No Cost to Customers

AEP
February 24, 2026

Amazon has committed $12 billion to build next‑generation data‑center campuses in Northwest Louisiana, a move that will create 540 direct on‑site jobs and an estimated 1,700 indirect opportunities. The company will also fund all necessary upgrades to SWEPCO’s substations, transmission lines and other grid infrastructure, ensuring that existing residential and business customers will not see any rate increases.

The investment will be completed in the coming weeks, with construction slated to begin imminently. SWEPCO will upgrade its 765 kV transmission network to support the new load, a strategic enhancement that aligns with AEP’s broader plan to capture the growing demand from data‑center and industrial customers. AEP has already signed agreements for 28 GW of new load since October 2025, targeting 56 GW by 2030.

The project is described as the most significant economic development win the region has seen in a generation. By keeping infrastructure costs off the rate base, Amazon’s commitment protects existing customers while delivering substantial tax revenue and long‑term growth for the communities served by SWEPCO.

"When more companies invest here, the cost of the electric system is shared more widely, contributing to long‑term rate stability for all customers," said Brett Mattison, SWEPCO President and Chief Operating Officer. "We are ready to serve this significant customer while remaining fully committed to each customer in every community we serve," he added. "Northwest Louisiana offers all of that and more. We are proud to welcome them to our region."

"Amazon's $12 billion investment in northwest Louisiana will build next‑generation data center campuses to support AI and cloud computing, ensuring opportunities for local communities. We're creating hundreds of high‑paying jobs and making substantial investments in local infrastructure. We're grateful for our strong partnerships with local leaders and proud to deepen our commitment to Louisiana," said David Zapolsky, Amazon's Chief Global Affairs and Legal Officer. Governor Jeff Landry echoed the sentiment, noting that the investment places Louisiana at the center of operations relied on across the country and connects communities to jobs that power how Americans live, work and do business.

The deal underscores the massive electricity demand generated by data centers, especially those supporting AI and cloud computing. AEP’s extensive 765 kV network positions it to serve these high‑capacity loads efficiently, reinforcing its competitive moat across its 11‑state footprint and supporting the electrification super‑cycle that is reshaping the industry.

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