Amazon Web Services' latest target in its acceleration of multibillion-dollar data center development is Georgia, where the cloud computing giant has been scooping up hundreds of acres over the past few months.
AWS, a subsidiary of Amazon, plans to spend $11 billion over an undisclosed period to expand its infrastructure in Georgia to support cloud computing and artificial intelligence technologies, according to a company statement. The new data centers will be located in the metropolitan Atlanta counties of Butts and Douglas, although AWS did not disclose specific locations. An Amazon spokesperson declined to comment to CoStar News beyond the information provided in the statement.
The data center sector is booming as tech companies try to keep pace with the demand for online services and AI-based applications. In some of the largest U.S. data center markets, such as Northern Virginia, Chicago, Dallas, Atlanta and Phoenix, the vacancy rate for data center space will soon fall below 1% and then drop even lower, according to Andy Cvengros, managing director at JLL and co-leader of the brokerage’s national data center practice.
The rise of AI has led to ballooning costs associated with data center development, as the technology requires significantly more computing power and cooling equipment than standard technology uses.
Some governments are stepping up to help with the construction costs. Meta, the parent company of Facebook and Instagram, unveiled plans last month to develop a $10 billion data center on 2,250 acres in northeast Louisiana that would be its largest data center campus globally after the state passed an incentive program that offers tax breaks for data center projects.
In Georgia, the state provides tax breaks to data center developers on equipment used in the facilities. Details about what kind of incentives AWS would be eligible for were not disclosed.
Amazon has been scooping up undeveloped land in Georgia in recent months, although the Seattle-based company has not disclosed whether the acquired properties are slated for distribution warehouses or data centers.
The size of land deals for U.S. data center development has increased over the past three years, driven by the need for multibuilding campuses and future expansion capabilities. The average land sale for a data center project last year was 224 acres, up 144% since 2022, according to Cushman & Wakefield's 2025 Data Center Development Cost Guide.
Land deals
In November, Amazon paid a little over $64.7 million for a 129-acre tract in Douglasville, the largest city in Douglas County, according to CoStar data. The seller was Atlanta-based TPA Group. Amazon bought additional land in Douglas County last year, according to CoStar data. In September, it paid $37.1 million for two separate tracts totaling about 156 acres in Lithia Springs at 2335 Echo Road and 2250 Rockhouse Road. The seller was Taylor & Mathis, also based in Atlanta.
In addition, Amazon in December reached an agreement to lease 543 acres in Butts County, according to property records. The lease agreement is with the Development Authority of Butts County, an economic development agency that owns the property.
AWS' data center plans are expected to be the most significant investment in Butts County's history and come to fruition after more than a year of negotiations, said Russ Crumbley, chairman of the Butts County Board of Commissioners, in the statement.
AWS said its Georgia expansion will create at least 550 new high-skilled jobs in technical roles like data center engineers, network specialists, engineering operations managers, security specialists and many others, according to the statement.
"State and local leaders have cultivated an environment that enables companies like AWS to make bold, forward-looking investments," said Roger Wehner, vice president of economic development at AWS, in the statement.
AWS said last month it will invest $23.8 billion in Ohio through 2030 in data centers, an increase from an earlier projection of $13.8 billion in total spending. The Ohio investment includes expanding existing properties and new construction.
In Ohio, the state's Data Center Tax Abatement Program offers full exemption from the sales tax on construction materials, computer equipment, mechanical and electrical equipment, cooling systems and power infrastructure once a company invests at least $100 million over three years and maintains an annual payroll greater than $1.5 million.
The infrastructure investments AWS is making across the United States "demonstrate our relentless commitment to powering our customers' digital innovation through cloud and AI technologies," Wehner said.