What just happened? Amazon Web Services, one of the world's three largest cloud providers, is increasingly focused on artificial intelligence and large language models. The company is now planning a significant expansion of its AI infrastructure initiatives in Pennsylvania.
Amazon has announced plans to invest at least $20 billion in new cloud computing facilities across Pennsylvania. The tech giant, founded by Jeff Bezos, says the move reflects its commitment to advancing artificial intelligence technologies, while state officials are celebrating the deal for its potential to create thousands of high-paying jobs and boost tax revenue.
Governor Josh Shapiro said Amazon will build new AI campuses in Salem Township and Falls Township, with additional locations under consideration. This means the total investment could eventually exceed the initial $20 billion estimate.
The new cloud and AI infrastructure is expected to generate at least 1,250 full-time, high-paying IT jobs, in addition to employing thousands more in construction, operations, and maintenance. Governor Shapiro's administration noted that the state worked closely with local leaders and Amazon to finalize the deal, suggesting a long period of negotiation aimed at securing the high-profile investment.
Governor Shapiro said Pennsylvania aims to play a major role in the development of cutting-edge AI technologies, including generative AI, machine learning services, and agentic AI applications. While modern AI still struggles to impress in some corporate pilot programs – or even in a game of chess against a decades-old console – Shapiro is calling Amazon's plan a strategic investment that will help maintain America's global leadership in innovation.
Amazon's Chief Global Affairs and Legal Officer, David Zapolsky, emphasized that the company is committed to both advancing AI and creating new job opportunities for local workers. While the investment is expected to boost local tax revenues, Zapolsky hinted that Amazon's interest lies more in infrastructure and talent than taxation.
Since 2010, Amazon has invested more than $26 billion in Pennsylvania, funding infrastructure projects and providing direct compensation to its employees. The company now operates a large e-commerce network across the state, including 23 fulfillment and sortation centers and 20 last-mile delivery stations.