Amazon Announces $12 Billion Louisiana Data‑Center Expansion as Part of $200 B Capex Plan

AMZN
February 24, 2026

Amazon has committed $12 billion to build new data‑center campuses in northwest Louisiana, specifically in the Caddo and Bossier parishes. The investment will support Amazon Web Services’ artificial‑intelligence and cloud‑computing capabilities and is expected to create 540 direct full‑time jobs and support an additional 1,700 indirect positions.

The Louisiana expansion is a component of Amazon’s broader $200 billion capital‑expenditure plan for 2026, designed to expand AWS infrastructure in response to growing AI demand. AWS revenue grew 24% year‑over‑year in the fourth quarter of 2025, the fastest growth in more than three years, largely driven by strong demand for AI workloads.

The sites were selected for their tax incentives, low electricity rates, and reliable power grid. Amazon will use surplus water and natural air cooling to minimize environmental impact and is investing in solar projects to add carbon‑free energy to the grid.

Amazon’s chief global affairs officer David Zapolsky said the investment will build next‑generation data‑center campuses to support AI and cloud computing, creating high‑paying jobs and strengthening local infrastructure. Louisiana Governor Jeff Landry highlighted the state’s appeal for data‑center investment and its role in national operations.

The $200 billion capex plan has drawn investor attention, with some analysts noting that the scale exceeds prior expectations and could lead to short‑term margin compression. Amazon’s management has emphasized that the spending is a long‑term play to secure AI infrastructure capacity and maintain market leadership, even if it pressures liquidity in the near term.

The expansion aligns with Amazon’s strategy to compete with Google, Microsoft, and Meta, all of which are investing heavily in AI infrastructure. The investment is expected to position AWS to capture a larger share of AI‑driven workloads and support the company’s broader growth trajectory.

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