Amazon is accelerating to become a strong player in America’s push to dominate the artificial intelligence race. It unveiled two major initiatives on Monday, November 25, signaling the company’s continuous shift from retail to becoming a national-scale compute provider.
The company’s stock was up 1.5% in the early trading hours, adding to its 4.7% year-to-date stock gain.
Amazon’s Indiana expansion
Amazon announced a $15 billion investment to build new data center campuses across Northern Indiana. The project will add 2.4 gigawatts of capacity and create more than 1,100 jobs, expanding the company’s existing footprint in the region.
Last year, Amazon committed $11 billion in St. Joseph County, Indiana.
The company said the facilities will support its cloud and AI workloads while delivering regional economic impact through workforce programs and energy partnerships.
“This agreement will ensure a surplus in new energy development that will deliver real savings to Hoosier ratepayers,” said Indiana Governor Mike Braun. Braun further noted it will strengthen “Indiana’s position in energy dominance and economic leadership.”
Data centers, especially AI compute centers, often put significant pressure on existing power grids, as they are unable to handle the sudden surge in demand. As a result, power prices go up, negatively impacting residents.
Amazon’s stock has gained 14% year-over-year.
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However, Amazon is working on a solution, with a major portion of the Indian expansion being developed in partnership with NIPSCO (Northern Indiana Public Service Company), an electric and gas utility company in Northern Indiana.
In total, the project is expected to add up to 3 gigawatts, of which only 2.4 gigawatts are needed to fulfill Amazon’s demands. The rest will be used to ensure “grid reliability for all of NIPSCO’s customers,” especially during peak demand periods, such as summers and extreme cold.
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AWS for the government
In a most recent investment to expand AI and supercomputing infrastructure for US federal agencies, Amazon announced an investment of up to $50 billion for Amazon Web Services (AWS) U.S. government customers.
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Set to begin in 2026, Amazon aims to add nearly 1.3 gigawatts of “AI and supercomputing capacity across AWS Top Secret, AWS Secret, and AWS GovCloud (US) Regions by building data centers.
One of the largest commitments to support government modernization, this is not Amazon’s first venture in this area, as AWS already supports more than 11,000 government agencies.
Additionally, federal agencies will also gain expanded access to comprehensive AI services, including Amazon SageMaker, Amazon Bedrock, Amazon Nova, and Anthropic Claude, as well as AWS Trainium AI chips and NVIDIA infrastructure, to elevate the US’ position in the next era of innovation.
According to Bloomberg, Amazon now has more than 900 data center facilities in more than 50 countries, including colocations and rented space.
Amazon, one of the leading names in cloud service providers, alongside competitors Microsoft and Alphabet, announced in its Q3 2025 earnings report that AWS (Amazon Web Services) is a highly profitable segment for the company, generating $33 billion in revenue.
These new investments follow a major collaboration announced earlier this month with OpenAI in a multiyear partnership valued at $38 billion. The deal reaffirmed AWS’s role as a backbone provider for frontier AI development.
Amazon’s front-footing the AI race parallels Alphabet’s rise as an AI frontrunner, which recently signed a multi-million-dollar contract with NATO Communication and Information Agency (NCIA) to “deliver highly secure, sovereign cloud capabilities.”
Alphabet is also set to reach the $4 trillion mark as its stock continues to report gains, up 1.5% on Tuesday.
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