Return to Uzone News Portal
Uzone.id – The competition among tech giants has reached new heights in recent years, with one of the hottest fronts being investments in data centers. A report from JPMorgan reveals that Amazon, Google, Meta, and Microsoft have collectively poured $125 billion into building and operating AI data centers from January to August 2024.
In the third quarter alone, these companies increased their infrastructure spending by 81% compared to the previous year, driven by surging demand for cloud computing and artificial intelligence (AI) services.
Data centers are the backbone of tech operations, serving as the hubs where data is stored, processed, and analyzed. As more devices connect to the internet and AI algorithms grow increasingly sophisticated, the need for greater computational power continues to rise.
Cutting-edge data centers enable tech companies to deliver faster, more reliable, and scalable cloud services to meet this demand.
Amazon Web Services (AWS)
Amazon through Amazon Web Services (AWS), continues to expand its data center infrastructure globally. Earlier last year, AWS announced plans to invest $11 billion to build a data center in Georgia, United States.
According to the JPMorgan report, Amazon would spend $8 billion on GPUs and other data center processors, as well as $8 billion on “other AI spend” in 2024. They also invested around $6 billion in operations expenses, training and research development, and inferencing. Those billions were invested to expand its data center capacity in response to rising demand for cloud services.
Microsoft
In 2024, Microsoft spent $40 billion on AI-related infrastructure. As OpenAI’s biggest backer, the company allocated about $20 billion for GPUs and other data center chips. Looking ahead to 2025, Microsoft plans to double its investment, aiming to spend $80 billion on new data center facilities to support AI development. This move highlights Microsoft’s focus on expanding its AI capabilities and growing its data center presence, especially in the U.S., Europe, and Asia.
Google
Still in 2024, Google invested $29 billion in AI, focusing heavily on expanding its data center infrastructure. Google already operates major data centers in the Netherlands, Denmark, and Finland, but it’s also eyeing new growth opportunities in Southeast Asia and Latin America. These regions are expected to play a key role in boosting Google’s cloud and AI services in the future.
Meta
Meta also invested billions of dollars in building a data center to support their social media services and technology development. According to a JPMorgan report, Meta’s AI capital expenditures totaled $23 billion, excluding $8 billion for operating costs, training & development, and inferencing. Although they are known for its social media platform, Meta also has a growing cloud business. The company has invested heavily in data centers to support the growth of its cloud business. Therefore, Meta’s new data centers will be built in the United States, Ireland, and Singapore.
Large data center investments by these major technological corporations are expected to significantly influence the global economy, as they could increase the Gross Domestic Product (GDP) of developed countries, including the United States and several European countries. This increase was driven by higher demand for data center construction, technology equipment, human resources, and energy infrastructure.
However, data center expansion raises concerns about energy use. Data centers are well-known for being energy-intensive buildings, and as AI becomes more widely used, energy usage is likely to rise further.
Technology businesses are attempting to solve these issues by investing in renewable energy and increasing the energy efficiency of their infrastructure. As a result, some new data centers are being developed using more ecologically friendly cooling technologies and renewable energy sources like solar and wind power.
Writer: Adinda Ayu Sasqia Putri
