COLUMBUS, OHIO — Amazon's profitable cloud business will invest about $7.8 billion through the end of 2029 to expand its central Ohio data center operations, state leaders announced Monday, further advancing efforts of the state to establish itself as the tech hub of the Midwest.
The new Amazon Web Services, or AWS, investments were announced by Republican Gov. Mike DeWine and Lt. Gen. Jon Husted, who heads the governor's technology office. The financial spending “further strengthens Ohio as the heart of our nation's technology and innovation,” the governor said in a statement.
AWS opened its first data centers in the region in 2016 and currently operates campuses in two counties in central Ohio, home to the capital city of Columbus. Management said several locations are being considered as locations for the new data centers, with a selection to be announced later this year.
The cloud computing company is now responsible for the second-largest private sector investment in the state's history, behind only the $20 billion chip factory announced by Intel last year. Facebook and Google also operate Ohio data centers.
Also under way in the region is a US$3.5 billion battery plant being built by Honda and South Korea's LG Energy Solution and a new US$110 million Software Innovation Center at Ohio University. A Columbus-based chemical research clearinghouse has long been a leader in big data storage and processing.
Once a reliable cash cow for Amazon, AWS has recently begun to feel the pressure as companies cut back on cloud spending in the face of high inflation and fears of a recession. The tech giant's first-quarter earnings report showed its cloud unit generated US$21.4 billion and grew 16 percent in the first three months of this year, up from a growth rate of 37 percent a year earlier.
But Roger Wehner, director of economic development for AWS, said the company has a long-term commitment to Ohio, having invested more than $6 billion in the state since 2015. He said Monday's investment will include new workforce development and training programs “that support the next generation of talent by emphasizing collaborative, long-term public-private partnerships across the state.”
The new AWS data centers will contain computer servers, data storage units, networking equipment and other technological infrastructure for cloud computing. As of last year, the existing business employed about 1,000 people across the state. JP Nauseef, president and CEO of JobsOhio, the state's privatized economic development office, said the newest investment will create 230 direct new jobs and support an estimated 1,000 jobs.
