Amazon plans to invest $12 billion in Louisiana to build new data centers, a further expansion by the tech giant in the field of artificial intelligence and cloud infrastructure.

According to a report in Reuters, the Seattle-based company said the data center project will be located in northwest Louisiana and is expected to create about 540 full-time jobs. Additional employment is also expected through supporting roles, including electricians and heating, ventilation and air-conditioning technicians.

The investment comes as major technology firms sharply ramp up spending to meet rising demand for AI software, data processing power and advanced computing hardware. Earlier this month, Amazon said it expects capital expenditures to reach roughly $200 billion this year, up significantly from $131 billion in 2025. The announcement unsettled investors, with Amazon shares falling afterward and remaining down 9.4% so far this year.

Across the industry, tech companies have committed at least $630 billion this year to AI-related infrastructure, Reuters noted, fueling concerns among some investors that an AI-led investment bubble may be forming.

According to Reuters, Data center projects have drawn opposition in some regions due to their impact on local power grids and heavy water usage. Amazon said it will address those concerns in Louisiana by setting up a $400 million fund to support local water infrastructure. The company added that water would only be used for cooling and essential operational needs.

Amazon also said it will pay all costs associated with building the Louisiana facilities and is working with Southwestern Electric Power Company on necessary electrical upgrades. When asked whether the $12 billion commitment is part of its previously announced $200 billion spending plan, an Amazon spokesperson said the company frequently makes investment announcements at different levels of government and that such investments typically unfold over many years, according to Reuters.