AWS Says U.S. Cloud Computing Infrastructure Investment Exceeds $108 Billion

Oct. 13, 2023
The newly released AWS Economic Impact Study illuminates the extent of the company's investment in U.S. communities when it constructs, connects, maintains, and operates its data centers in its core regions around the country.

In its AWS Economic Impact Study (EIS) released yesterday, Amazon Web Services states that since 2011, it has invested over $108 billion into its cloud computing infrastructure in the United States.

In his letter introducing the study, AWS Chief Executive Officer Adam Selipsky noted how that investment alone has contributed nearly $38 billion in gross domestic product (GDP) to the U.S. economy, including a myriad of economic benefits associated with empowering innovation across the company's customer base of rapidly growing startups, large enterprises and SMBs, government agencies, and nonprofits.

AWS said the EIS is based on the premise that when the company "constructs, connects, maintains, and operates AWS data centers, it invests in communities."

"This investment is felt through job creation and retention, renewable energy projects, access to cloud training and education, community engagement, and long-term financial stability for individuals," added the company.

The Numbers

According to the study, total investment by AWS in the construction of its cloud computing infrastructure in the U.S. from 2011 through 2022 came in at $92.04 billion.

AWS noted the total investment as recorded by the EIS includes: capex on construction labor, materials, services, manufacturing, and supply chain operations; as well as recurring opex on employee and contractor compensation, utility fees, and facilities and rental costs.

Also during the time period, AWS said it purchased an estimated $35.42 billion in goods and services from U.S. suppliers to support its data centers. The EIS revealed that every $1 of this local spending generated an additional $0.84 in output for U.S. businesses.

The company contends its U.S. investment during the timeframe created an estimated total output of $65.15 billion for local businesses. Estimated output generated at local businesses in the U.S. by AWS data center construction during the timeframe was pegged at $38.55 billion.

Local Spending Lifts Workforce

Meanwhile, during the time period, AWS said its local spending on data center construction in the U.S. totaled $18.30 billion.

The company said the economic impact of this local spending lifted American jobs in the skilled trades, including electricians, fiber-optic technicians, and heating, ventilation, and air conditioning (HVAC) technicians.

The estimated annual average number of full-time equivalent jobs supported at businesses in the U.S. by the AWS investment was counted at 29,800. The estimated annual average number of full-time equivalent jobs supported at businesses in the U.S. by AWS data center construction during the time period was seen at 19,900.

AWS CEO Selipsky added, "We have dedicated resources to engage in what matters most to our neighbors, providing new educational opportunities at local schools, helping to develop the next generation of workforce, and always keeping sustainability and our net-zero carbon commitment to The Climate Pledge front of mind."

How AWS Data Center Investment Affects U.S. GDP

The study prepares what AWS describes as a conservative estimate of the value added to the U.S. GDP by its investment, which evaluates only the economic impact of the portion of that investment that is spent locally.

Estimated output generated at local businesses in the U.S. by AWS data center operations was placed at $26.14 billion for the time period.

Estimated value added to the U.S. GDP by AWS investment in its data center operations rang in at $15.97 billion.

Labor income supported at businesses in the U.S. by AWS data center operations for the timeframe was estimated at $8.75 billion.

Meanwhile, the EIS estimated the annual average of full-time equivalent jobs supported at businesses in the U.S. by AWS data center operations from 2011-2011 at 9,700.

Local Spending Reflects Long-Term Operational Goals

In terms of the raw economic impact of AWS data center operations, the company said that from 2011 to 2022, its local spending on data center operations in the U.S. totaled $17.01 billion.

The company noted this number involves purchases of utilities, leases of real estate and networking infrastructure, and compensation paid to related AWS employees and contractors support the continuous operation of data centers.

The EIS also charts the economic impact of AWS manufacturing and supply chain operations, and the totality of AWS infrastructure investment across the U.S. from 2011–2022 in its four major geographic locations of California, Ohio, Oregon, and Virginia, while also purchasing goods and services from nearly all 50 states.

"At AWS, we take a long-term view. We are building a business that will outlast us all," said AWS CEO Selipsky.

He added, "We bring this same long term consideration to our investment choices. We think deeply about where we are investing as well as the impact it will have on the communities where we live and work."

Read the full AWS Economic Impact Study.

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About the Author

Matt Vincent

A B2B technology journalist and editor with more than two decades of experience, Matt Vincent is Editor in Chief of Data Center Frontier.

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