WASHINGTON, Jan. 20 (Reuters) – The cloud services division of Amazon.com Inc (AMZN.O) said Friday it plans to invest an additional $35 billion by 2040 to expand data centers in Virginia.
Amazon Web Services (AWS) said the new investment will create 1,000 jobs. Virginia Republican Governor Glenn Youngkin said AWS will establish multiple data center campuses in Virginia.
In 2021, AWS said it had invested $35 billion from 2011 to 2020 in northern Virginia data centers and had 3,500 full-time employees at its state data centers.
Pending approval from state legislators, Virginia is developing a new “Mega Data Center Incentive Program,” which will allow the company to receive up to 15 years of tax exemption extensions for data center sales and use on equipment and software.
AWS is also eligible for a state grant of up to $140 million “for site and infrastructure improvements, staff development, and other project-related costs.”
Amazon shares closed 3.8% higher on Friday.
Amazon announced in 2018 after a long contest that Northern Virginia would be home to its second headquarters, known as “HQ2”, eventually employing more than 25,000 workers. As of April, Amazon said the workforce assigned to the site was about 5,000.
Youngkin has received some criticism for withdrawing from a competition to attract a new Ford Motor (FN) battery plant expected to be built in partnership with China’s Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ ), the world’s largest battery producer.
Youngkin defended his decision Friday, telling Bloomberg News that he “looks forward to bringing a great company there. It won’t be a company that uses some sort of Trojan horse relationship with the Chinese Communist Party to make a profit. “
A spokesman for Youngkin has said that “while Ford is an iconic American company, it became clear that this proposal would serve as a front for the Chinese Communist Party.”
Ford declined to comment on Youngkin’s decision to withdraw.
In July, Ford announced it plans to locate 40 GWh of battery capacity in North America by 2026. It also announced that CATL would provide battery packs for Mustang Mach-E models for North America beginning in 2023 and discuss partnerships for batteries in Ford vehicles. around the world.
“Our discussions with CATL continue — and we have nothing new to announce on either front,” Ford said.
Michigan is also a candidate for the Ford battery plant, sources said, and a decision could be made in the coming weeks.
Reporting by David Shepardson and Akash Sriram in Bengaluru; Edited by Aurora Ellis and Himani Sarkar
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