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Investing.com -- Amazon (NASDAQ:AMZN) Web Services (AWS) announced plans to invest up to $50 billion to expand artificial intelligence (AI) and high-performance computing (HPC) infrastructure for U.S. government agencies on Monday. The multiyear initiative represents one of the company’s largest federal cloud expansions and comes as government demand for secure AI capabilities continues to grow.
Amazon shares ticked up 2% in afternoon trade on Monday following the announcement.
The investment will support the development of approximately 1.3 gigawatts of new compute capacity across AWS Top Secret, AWS Secret, and AWS GovCloud (US) Regions. According to the company, this will be the first purpose-built AI and HPC infrastructure designed specifically for U.S. government workloads across all classification levels.
AWS said the new data centers are expected to break ground in 2026 and will incorporate advanced compute and networking technologies. The facilities will be constructed to handle large-scale model training, complex analytics, and other data-intensive operations that federal agencies are increasingly adopting.
As part of the expansion, government customers will gain access to a broader suite of AWS AI services, including Amazon SageMaker for model training and customization, Amazon Bedrock for deploying foundation models, and options spanning Amazon Nova, Anthropic Claude, and leading open-weights models. The company’s Trainium chips and NVIDIA-based systems will also be available across regions.
AWS said these capabilities are intended to support agencies in developing custom AI tools, improving data processing workflows, and enhancing employee productivity. Federal customers currently use AWS infrastructure for missions ranging from national security to public services, and the company noted that demand for more scalable AI environments has accelerated over the past two years.
The initiative also expands the availability of AWS’s secure cloud environments, which are designed to meet federal compliance and security requirements. Access to these regions allows agencies to run classified and unclassified workloads while maintaining data isolation and regulatory controls.
Amazon said the investment will be available to both existing and future U.S. government clients, though specific contract values and agency commitments were not disclosed. The company also did not provide a timeline for when the new capacity will be fully operational.