Published Date : 31/05/2025
Amazon Web Services (AWS) is continuing its ambitious expansion of data centers across the globe to meet the surging demand for artificial intelligence (AI) and cloud computing. The company recently opened a cluster of data centers in Mexico and is now building new facilities in Chile, New Zealand, Saudi Arabia, and Taiwan, according to a Bloomberg News report.
The expansion is part of AWS's strategy to increase its capacity to power AI, which requires significant computational power and data storage. AWS CEO Matt Garman emphasized the strong demand for these services, stating, “Demand is strong.” The company is also expanding its stock of Nvidia’s latest semiconductor, the GB200, to further enhance its AI capabilities.
In April, Kevin Miller, vice president of global data centers at AWS, posted on LinkedIn that the company continues to see strong demand for both generative AI and foundational workloads. At the time, AWS had 114 availability zones and plans for 12 more in 36 global regions, serving 245 countries and territories. An AWS spokesperson noted that availability zones refer to a cluster of one or more discrete data centers, but the company does not disclose its actual data center count.
In January, AWS announced a significant investment of at least $11 billion in Georgia to expand infrastructure to support cloud computing and AI. Vice President of Economic Development at AWS, Roger Wehner, stated, “AWS’s ongoing infrastructure investments across the United States demonstrate our relentless commitment to powering our customers’ digital innovation through cloud and AI technologies.”
The server market is expected to reach $1.3 trillion by 2028, according to a January report by IDC. Major players in the data center market include Amazon, Microsoft, and Google Cloud, as well as data center companies like Digital Realty and Equinix. AI data centers are essential because traditional data centers and power grids struggle to accommodate the intense computational power, data storage, and energy required by AI.
On May 21, it was reported that one of OpenAI’s future data centers secured $11.6 billion in funding commitments. The center, being constructed in Abilene, Texas, is set to become the largest for the ChatGPT maker and is slated for completion next year. In March, xAI and Nvidia joined a $30 billion AI infrastructure project called the AI Infrastructure Fund, backed by BlackRock, Microsoft, and MGX.
AWS's expansion efforts are a clear indication of the company's commitment to staying at the forefront of the AI and cloud computing industries, ensuring that it can meet the growing demands of its customers and drive innovation in the tech sector.
Q: What is AWS expanding its data centers for?
A: AWS is expanding its data centers to meet the growing demand for artificial intelligence (AI) and cloud computing services, which require significant computational power and data storage.
Q: Where is AWS building new data centers?
A: AWS is building new data centers in Chile, New Zealand, Saudi Arabia, and Taiwan.
Q: What is the significance of Nvidia’s GB200 semiconductor for AWS?
A: Nvidia’s GB200 semiconductor is crucial for AWS as it helps enhance the company’s AI capabilities, providing the necessary computational power for advanced AI applications.
Q: How much is AWS investing in Georgia for infrastructure expansion?
A: AWS plans to invest at least $11 billion in Georgia to expand infrastructure to support cloud computing and AI.
Q: What is the expected size of the server market by 2028?
A: The server market is expected to reach $1.3 trillion by 2028, according to a January report by IDC.