Investing.com — shares fell 2.5% in late trading Monday following the announcement of a massive infrastructure expansion in the American South. The tech giant revealed plans to invest $12 billion to establish its first data center campuses in northwest Louisiana to bolster its cloud and artificial intelligence capabilities.
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The project, spread across Caddo and Bossier Parishes, is expected to create 540 direct full-time jobs and support over 1,700 additional positions. Despite the economic scale, investors remain wary as the stock has retreated 14.3% over the past month amid rising concerns regarding aggressive AI capital expenditures.
“Amazon’s $12 billion investment in northwest Louisiana will build next-generation data center campuses to support AI and cloud computing, ensuring opportunities for local communities,” said David Zapolsky, Amazon’s Chief Global Affairs and Legal Officer. The company aims to mitigate local strain by funding $400 million in public water infrastructure and covering 100% of its own utility upgrade costs.
To maintain regional goodwill, the Seattle-based firm is also launching a $250,000 community fund managed by the nonprofit ChangeX. This initiative targets STEM education and local environmental projects to ensure the massive industrial footprint provides tangible benefits to Shreveport-area residents.
“Amazon is making a long-term commitment to Louisiana because our state delivers—prime sites, strong infrastructure and a skilled, hard-working workforce ready to support the next generation of technological innovation,” Louisiana Governor Jeff Landry said. The state anticipates the campuses will generate tens of millions in tax revenue for schools and essential public services.
The expansion builds on an existing Louisiana footprint that includes four fulfillment centers and several solar energy projects. While local leaders hail the move as transformational, Wall Street continues to scrutinize whether the high cost of digital infrastructure will yield near-term returns for shareholders.