A unit of global technology giant Amazon plans to invest $10 billion in a North Carolina cloud computing and artificial intelligence innovation center — one of the biggest investments in state history, state and local officials said Wednesday.
The project, fueled by increased demand for advanced cloud infrastructure and computing power, is expected to bring about 500 high-paying jobs to a 20-building, 800-acre campus in Richmond County.
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Amazon Web Services — which supports companies across industries though cloud computing services — is planning the campus. As part of the project, AWS plans to build new data centers in the county, with computer servers, data storage drives, networking equipment and other technology infrastructure used for cloud computing and generative AI technologies, Gov. Josh Stein said in a news release.
“Artificial intelligence is changing the way we work and innovate, and I am pleased that North Carolina will stay at the forefront of all that’s ahead as we continue to attract top technology companies like Amazon,” Stein said in a statement.
Amazon has invested $12 billion in North Carolina since 2010, contributing $13.1 billion to the state's economy and supporting 24,000 full and part-time jobs plus 26,000 indirect jobs across various facilities, according to the company.
In its latest project, the company said it expects to hire data center engineers and network specialists, engineering operations managers, security specialists and employees for other technical roles. The investment is expected to also create thousands of local construction and data center supply chain jobs in the state.
The company said it would be a “hub for cutting-edge technology” and drive significant economic growth in the county. “We look forward to partnering with state and local leaders, local suppliers, and educational institutions to nurture the next generation of talent,” David Zapolsky, Amazon’s chief global affairs and legal officer, said in a statement.
Amazon said it plans to bring training and education programs to the community, including data center technician programs and science and technology awareness programs to K-12 schools. It also is coordinating programs with community colleges, technical schools, universities and workforce development organizations to develop training and paid apprenticeship programs to build a talent pipeline. The programs are expected to focus on data center operations, fiber optic welding techniques and information infrastructure, the company said.
The company said it chooses its data center locations based on the proximity to strong utility infrastructure and skilled labor.
Possible incentives
Amazon has been exploring the possible use of a tax credit program for data centers, according to a state Department of Commerce spokesperson. Richmond County officials on Tuesday approved an incentives package for the company, which could span 20 years. Such deals are typically only paid out if the company meets certain investment and hiring targets. The company would have to repay any grants to the county if it doesn't invest at least $1 billion and hire at least 50 people by the end of 2030, county records show.
An Amazon spokesperson declined to comment on the incentives.
Richmond County had an unemployment rate of 3.7% at the end of April, in line with the rest of the state, according to the U.S. Bureau of Labor Statistics.
“This monumental investment will not only bring new opportunities and jobs to our residents but will also transform the future of Richmond County and the Sandhills for generations to come,” Martie Butler, Richmond County’s economic developer, said in a statement.
In addition to its data center investment, Amazon has built numerous ecommerce fulfillment centers across the state. It has also made large investments in renewable energy, including solar and wind farms that are projected to generate enough energy to power about 75,000 homes, according to the company.
It’s the latest company to announce major data center plans, building off the growth of AI technologies.
On Monday, WhiteFiber Inc., said it bought a 96-acre, 1 million-square-foot industrial property in Madison, that it plans to turn into an AI data center campus.
The $1 billion project is expected to create more than 60 jobs, according to Rockingham County officials.
WhiteFiber, a unit of Bit Digital Inc., has reached an agreement with Duke Energy to power the facility. The project is expected to qualify for certain state tax exemptions for data centers, the company said.
IBM, Apple and Facebook parent Meta have also opened large North Carolina data centers in the past five years.
Microsoft, which has been planning a data center in Catawba County, recently paid almost $27 million for about 1,385 acres in Person County. The company, which has been investing in data centers across the country, hasn’t announced plans for the land yet.
Utilities debate
The increase in data centers in this fast-growing state has stoked debate over the availability — and the cost — of public utilities. Data centers consumed about 4.4% of the country’s electricity in 2023, according to the U.S. Department of Energy. That share is expected to grow to between 6.7% and 12% by 2028.
The same day the Amazon deal was announced, state lawmakers in Raleigh proposed new energy policy changes, supported by Duke Energy and others in the energy industry, that would let power companies charge people for power plants that aren't built yet.
Critics say it'll cause people's bills to go up statewide, but supporters say it should probably lead to lower electricity bills in the long run.
Regardless, supporters said, the changes in the new legislation are needed to allow for faster construction of new power plants to keep up with the state's booming population. Without the changes, they said, there won't be future announcements of big economic development deals.
"These companies would not be coming to North Carolina unless our energy is reliable," said Rep. Neal Jackson, a Republican whose Moore County district borders Richmond County. "If there's blackouts like we have seen in other countries, in other states, they're not going to be coming to North Carolina."
Rep. Pricey Harrison, D-Guilford, said if state officials want to keep bringing data centers to North Carolina they need to look into other ways to protect people and businesses in the areas those centers are coming to.
"There's wonderful news about Amazon," she said. "But I also know about these data centers that are moving in around the country — they are creating great rate increases in the residential customers in the area, and also just using up all the water."
WRAL State Government Reporter Will Doran contributed to this report.