Amazon.com Inc. plans to spend almost $150 billion in the coming 15 years on data centers, giving the cloud-computing giant the firepower to handle an expected explosion in demand for artificial intelligence applications and other digital services. The spending spree is a show of force as the company looks to maintain its grip on the cloud services market, where it holds about twice the share of No. 2 player Microsoft Corp. Sales growth at Amazon Web Services slowed to a record low last year as business customers cut costs and delayed modernization projects. Now spending is starting to pick up again, and Amazon is keen to secure land and electricity for its power-hungry facilities. "We're expanding capacity quite significantly," said Kevin Miller, an AWS vice president who oversees the company's data centers. "I think that just gives us the ability to get closer to customers." Over the past two years, according to a Bloomberg tally, Amazon has committed to spending $148 billion to build and operate data centers around the world. The company plans to expand existing server farm hubs in northern Virginia and Oregon as well as push into new precincts, including Mississippi, Saudi Arabia and Malaysia. Amazon's planned outlay on server farms dwarfs the public commitments from Microsoft and Alphabet Inc.'s Google, though neither company discloses data center-related spending as consistently as Amazon. Microsoft and Google spokespeople declined to provide comparable figures and added that each company likely includes different costs in their estimates. Amid broader cost-cutting at Amazon, AWS's capital expenditures on data centers shrank 2% in 2023 - for the first time - even as Microsoft boosted its own spending by more than 50%, according to the research firm Dell'Oro Group. But Amazon's chief financial officer said last month that capital expenditures would increase this year to support AWS growth, including AI-related... |