Amazon Web Services (AMZN) is planning a $10B investment into data center expansion in Ohio, a move that can shape its future AI innovation. With the ongoing race for artificial intelligence supremacy, the Amazon (AMZN) stock target has gotten a boost, as it could be set to become an AI force in the coming year.
Throughout 2024, AMZN has been one of the most successful stocks on the US market. The stock has a 45% year-to-date increase but has posted solid quarterly revenue throughout 2024. The company is now ramping up its AI investments in 2025, with the investment looking to return $23B in the next 5 years.
By 2030, AWS’s planned investment toward data center expansion in Ohio is forecasted to surpass $23 billion. This would mark one of the largest private investment commitments in Ohio state history. The investment is expected to create hundreds of new AWS jobs and support thousands of jobs in the local economy. Furthermore, it will help in bolstering local communities across Ohio, according to an AMZN statement.
“As reliance on digital services continues to grow, so does the importance of data centers; they are critical to today’s modern economy,” said Ohio Governor Mike DeWine. “AWS’s substantial investment in Ohio will help keep our state at the forefront of the global technology.”
“These are significant investments from AWS that support Ohio’s growing reputation as the tech hub of the Midwest,” said Ohio Lieutenant Governor Jon Husted. “Artificial Intelligence and data centers are crucial to America’s economic superiority because they drive innovation, support high-tech industries, enhance productivity across sectors, and enable the analysis and management of vast data essential for global competitiveness.”
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According to Amazon, Since 2010, they have invested $35 billion in Ohio. This has added $31 billion to the state’s gross domestic product (GDP) and created 38,000 full- and part-time jobs. In a growing industry and market like AI, this type of investment could spur momentum over the next few years.
For Amazon stock, the AI wave is expected to be a catalyst for the company’s growth, and investors’ shares. AWS is looking to address present difficulties when utilizing generative AI solutions. Those solutions are poised to be the launching pad for notable growth next year. Additionally, AWS is targeting a reduction in costs, simplification of app development, and advanced AI-agent functions as key areas of focus for next year. The company’s Trainium2 chip is expected to reduce capacity by 40%. Its presence should provide a more affordable option for the scaling of generative AI products. Conversely, its Bedrock platform is set to offer new tools that will automate coding, data integration, and more.
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These avenues will only increase these use cases for AI in the coming year. Thus, the company is quickly climbing the charts as a top stock for both tech and AI specifically in 2025. At press time, the stock was down 4% by the conclusion of Wednesday’s trading session.
