Amazon is set to invest up to $50 billion to expand artificial intelligence (AI) and supercomputing capacity for United States government customers, marking one of the largest cloud infrastructure commitments targeting the public sector. The announcement was made on Monday by Amazon Web Services (AWS).
The project, slated to begin in 2026, will add nearly 1.3 gigawatts of new AI and high-performance computing capacity across AWS Top Secret, AWS Secret, and AWS GovCloud regions. The new data centers will be equipped with cutting-edge computing and networking systems—one gigawatt being enough to power approximately 750,000 US households.
“This investment removes the technology barriers that have held the government back,” said AWS CEO Matt Garman.
Supporting Federal AI Development
AWS already serves more than 11,000 government agencies. The initiative is designed to give federal agencies access to a comprehensive suite of AWS AI services, including:
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Amazon SageMaker – for AI model training and customization
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Amazon Bedrock – for deploying AI models and agents
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Foundational models – including Amazon Nova and Anthropic Claude
By leveraging AWS’s expanded and dedicated capacity, the federal government aims to develop tailored AI solutions and achieve significant cost savings.
A Global AI Race
The move comes amid an intensifying global push to advance AI technology, with countries like the US and China competing for leadership in this emerging field. Tech giants, including OpenAI, Microsoft, and Alphabet, are investing billions into AI infrastructure, fueling demand for high-performance computing.
On Wall Street, Amazon’s stock rose 1.7 percent, while other tech companies also surged. Alphabet approached a $4 trillion valuation, and Nvidia, which recently partnered to build supercomputers for the US Department of Energy, saw its stock climb 1.8 percent following expectations of higher fourth-quarter revenue.
