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$35 Billion To Be Invested In Virginia By Amazon Web Services

$35 Billion To Be Invested In Virginia By Amazon Web Services
The cloud services business unit of the retailing giant Inc has announced that it is contemplating making an investment of an additional $35 billion in data centers in Virginia by 2040.
Amazon Web Services (AWS) stated that the new streak of its investment will result in the creation of 1,000 new jobs. Virginia Republican Governor Glenn Youngkin stated that AWS will build multiple data center campuses throughout the state.
AWS stated in 2021 that between 2011 and 2020, it invested $35 billion in data centers in northern Virginia and had 3,500 full-time employees at its data centers in the state.
Virginia is developing a new "Mega Data Center Incentive Program," which would allow the company to receive up to a 15-year extension of Data Center Sales and Use tax exemptions on equipment and software, pending approval by state lawmakers.
AWS will also be eligible for a $140 million state grant "for site and infrastructure improvements, workforce development, and other project-related costs."
Amazon's stock rose 3.8% on Friday.
Amazon announced in 2018 that Northern Virginia would be the site of its second headquarters, known as "HQ2," and would eventually employ more than 25,000 people. Amazon reported in April that the site had around 5,000 employees.
Youngkin has come under fire for withdrawing from a competition to attract a new Ford Motor battery plant, which is expected to be built in partnership with China's Contemporary Amperex Technology Co Ltd (CATL), the world's largest battery producer.
Youngkin defended his decision on Friday, telling Bloomberg News that he "looks forward to it." "I'm looking forward to bringing a fantastic company there. It will not be one that takes advantage of a Trojan-horse relationship with the Chinese Communist Party."
According to a Youngkin spokesperson, "while Ford is an iconic American brand, it quickly became clear that this proposal would serve as a front for the Chinese Communist Party."
Ford refused to comment on Youngkin's decision to resign.
Ford announced in July that it intends to localize 40 GWh of battery capacity in North America beginning in 2026. It was also announced that CATL would provide battery packs for Mustang Mach-E models in North America beginning in 2023, as well as discuss cooperation for batteries in Ford vehicles worldwide.
"Our talks with CATL continue – and we have nothing new to announce on either front," Ford said.
According to sources, Michigan is also a candidate for the Ford battery plant, and a decision could be made in the coming weeks.

Christopher J. Mitchell

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