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AWS to invest $50 billion in U.S. government AI infrastructure expansion

Prime Highlight

  1. AWS is investing $50 billion to construct a large-scale AI computing infrastructure that will expand federal agencies’ access to advanced AI capabilities.
  2. The initiative aims to accelerate critical government missions, from cybersecurity to scientific research, by removing long-standing technology barriers.

Key Facts

  1. The new infrastructure will deliver 1.3 gigawatts of compute power and support services like Amazon SageMaker, Amazon Bedrock, and third-party tools such as Anthropic’s Claude.
  2. Construction on the purpose-built, security-compliant data centers will begin in 2026, continuing AWS’s decade-long expansion of cloud services.

Background

Amazon Web Services (AWS) is making one of its largest government-focused investments to date, committing $50 billion to build advanced AI computing infrastructure for U.S. federal agencies. The company announced the move on Monday, saying the initiative will expand the government’s access to AI technologies already used in the private sector.

The new buildout will provide 1.3 gigawatts of compute power and will support a wide range of AWS AI services. These include Amazon SageMaker for model development, Amazon Bedrock for model deployment, and access to third-party tools such as Anthropic’s Claude chatbot. AWS aims to give agencies a stronger base for projects in cybersecurity, scientific research, health innovation, and other areas.

AWS is scheduled to begin construction on the new data centers in 2026. The company says the systems will be purpose-built for high-performance workloads and designed to meet strict government security standards.

Matt Garman, CEO of AWS, said the investment will help federal customers overcome long-standing technology limitations. He said in the company’s announcement that agencies will now have broader access to cutting-edge AI tools, empowering them to speed up essential work ranging from cybersecurity to developing new medicines. According to him, this investment eliminates the technological obstacles that have slowed government progress and strengthens America’s position as a leader in the AI age.

AWS has spent more than a decade building cloud services for the U.S. government. It launched AWS Top Secret-East in 2014 to handle classified workloads, followed by AWS Secret Region in 2017.

Major tech companies are paying more attention to how the government uses AI. Earlier this year, OpenAI released a special federal version of ChatGPT and then offered its enterprise plan for only $1 per year. Anthropic and Google soon made similar low-cost deals. These moves show that each company is competing to win federal AI partnerships.