SEATTLE AND WASHINGTON, D.C. — Amazon (NASDAQ: AMZN) has announced an investment up to $50 billion to expand artificial intelligence (AI) and supercomputing abilities for Amazon Web Services (AWS) U.S. government clients. Amazon will break ground beginning next year on advanced data centers that will add 1.3 gigawatts of AI and supercomputing capacity.
AWS currently supports more than 11,000 government agencies. The cloud computing software provides security, compliance and governance tools for the government control of unclassified and classified data.
The new investment is expected to enable federal government agencies — including defense, healthcare and energy departments — in their discovery and decision-making processes using simulation and modeling data with AI. Amazon’s investment directly supports the Trump Administration’s AI Action Plan outlined in June 2025.
“Our investment in purpose-built government AI and cloud infrastructure will fundamentally transform how federal agencies leverage supercomputing,” says Matt Garman, CEO of AWS. “We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery. This investment removes the technology barriers that have held government back and further positions America to lead in the AI era.”
Amazon’s investment is the latest deal in the private sector’s push to provide AI infrastructure for government utilization. In September, Meta (parent company of Facebook and Instagram) announced its collaboration with the U.S. General Services Administration (GSA) for the use of Meta’s Llama open-source AI platform. In January, OpenAI, Oracle and SoftBank announced at The White House a $500 billion investment to develop AI infrastructure for an initiative called Project Stargate.
Following Amazon’s investment, federal agencies will have access to AWS’ suite of AI services, including Amazon SageMaker AI for model training and customization and Amazon Bedrock for model and agent deployment. Clients will also be able to utilize the Claude-branded family of language models by AI startup Anthropic and semiconductors (i.e. computer chips) produced by NVIDIA and Amazon (Trainium AI).
Further details about the new AWS data centers were not disclosed. Amazon did reportedly acquire a data center site in Bristow, Va., for $700 million.
Other AWS announcements this year include Amazon investing at least $20 billion in data center developments in Pennsylvania, $11 billion in Georgia and a $10 billion data center campus in North Carolina.
Amazon’s stock price closed on Monday, Nov. 24 at $226.28 per share, up from $201.45 a year ago, a 12.3 percent increase.
— John Nelson