WASHINGTON, Jan 20 (Reuters) – The cloud services division of Amazon.com Inc (AMZN.O) said on 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. Republican Virginia Governor Glenn Youngkin said AWS will establish multiple data center campuses across Virginia.
In 2021, AWS said that between 2011 and 2020 it had invested $35 billion in data centers in northern Virginia and had 3,500 full-time employees at its data centers in the state.
Pending approval from state lawmakers, Virginia is developing a new “mega data center incentive program,” which would see the company qualify for a 15-year extension of exemptions taxes on sales and use of data center equipment and software.
AWS will also be eligible to receive a state grant of up to $140 million “for site and infrastructure improvements, workforce development, and other project-related costs.”
Shares of Amazon closed up 3.8% on Friday.
Amazon in 2018, after a long contest, announced that Northern Virginia would house its second headquarters known as “HQ2” and would eventually employ more than 25,000 employees. In April, Amazon said its staff assigned to the site was around 5,000 people.
Youngkin has come under fire for pulling out of a competition to lure a new Ford Motor (FN) battery plant to be built with China’s Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ), the largest battery manufacturer in the world.
Youngkin defended his decision on Friday, telling Bloomberg News that he was looking forward to bringing big business there. It will not be a company that uses some kind of Trojan horse with the Chinese Communist Party to win.
A spokesperson for Youngkin said that “although 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 step down.
In July, Ford announced plans to locate 40 GWh of battery capacity in North America starting in 2026. It also announced that CATL would supply batteries for Mustang Mach-E models for North America starting in 2023 and would discuss cooperation for batteries in Ford vehicles. around the world.
“Our talks with CATL are ongoing – and we have nothing new to report 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; Editing by Aurora Ellis and Himani Sarkar
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