Amazon Commits $50 Billion to Federal AI Infrastructure Buildout via AWS
Amazon unveiled a $50 billion initiative to construct federal-grade data centers starting in 2026, delivering 1.3 gigawatts of power—equivalent to hundreds of thousands of homes. The AWS-powered infrastructure will provide government agencies with AI tools including Claude models, Nvidia GPUs, and Amazon's Trainium chips, all compliant with stringent federal standards.
The MOVE accelerates a broader arms race among tech giants. Oracle, OpenAI, and SoftBank's $500 billion Stargate venture mirrors this push, while Anthropic and Meta recently announced similar U.S. data center expansions. AWS currently supports 11,000 government entities; this investment explicitly targets productivity gains through custom AI systems and data optimization.