COLUMBUS, Ohio (AP) — Amazon's profitable cloud business will invest about $7.8 billion through the end of 2029 to expand its data center operations in central Ohio, state leaders announced Monday, further pushing the state's efforts 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 Intel announced last year. Facebook and Google they also operate Ohio data centers.
They are also in progress in the area $3.5 billion battery plant manufactured by Honda and South Korea's LG Energy Solution and a new $110 million Software Innovation Center at Ohio State University. ONE chemical research clearinghouse based in Columbus has long been a leader in big data storage and processing.
Once reliable cash cow for Amazon, AWS has recently come under pressure as companies cut back on cloud computing spending in the face of high inflation and fears of a recession. The tech giant's first-quarter earnings report showed the cloud unit generated $21.4 billion and grew 16% in the first three months of this year, up from a 37% growth rate a year earlier.
But Roger Wehner, AWS's director of economic development, 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. “supporting 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.
