Amazon will invest $35B for new Virginia data centers

Amazon’s cloud computing division, Amazon Web Services, will significantly expand its data center presence in Virginia, under plans announced Friday by Gov. Glenn Youngkin.

AWS, which has corporate offices in Fairfax County, will invest up to $35 billion by 2040 to open multiple data center campuses across Virginia, creating at least 1,000 jobs.

The project is eligible for state incentives, including a Major Employment and Investment Performance grant of up to $140 million. Pending approval by the Virginia General Assembly, it would also be eligible for incentives through a new Mega Data Center Initiative program.

The program includes a 15-year extension of tax exemptions that data center operators receive on equipment and software.

AWS already has multiple data centers in Northern Virginia, including in Ashburn, Sterling, Manassas, Haymarket and Chantilly.

According to AWS, it has invested more than $35 billion in Virginia since 2006.

Amazon is already eligible for major cash incentives of up to $750 million, as part of its decision to locate its HQ2 in Northern Virginia, with a promise of eventually creating more than 25,000 jobs locally.

Jeff Clabaugh

Jeff Clabaugh has spent 20 years covering the Washington region's economy and financial markets for WTOP as part of a partnership with the Washington Business Journal, and officially joined the WTOP newsroom staff in January 2016.

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