Amazon invests $12 billion in Louisiana data center, stock price drops

2026-02-23 21:32:20

Investing.com - Amazon (NASDAQ:AMZN) stock fell 2.5% after hours on Monday, following the tech giant’s announcement of a large-scale infrastructure expansion in the southern United States. The company disclosed plans to invest $12 billion to establish its first data center campus in northwest Louisiana to enhance its cloud computing and artificial intelligence capabilities.

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The project spans the parishes of Caddo and Bossier and is expected to create 540 direct full-time jobs and support over 1,700 additional positions. Despite the large economic scale, investors remain cautious as the stock has declined 14.3% over the past month, amid growing market concerns over aggressive AI capital expenditures.

“Amazon’s $12 billion investment in northwest Louisiana to build a next-generation data center campus supporting AI and cloud computing will create opportunities for the local community,” said David Zapolsky, Amazon’s Chief Legal Officer for Global Affairs. The company plans to invest $400 million in public water infrastructure and cover 100% of its utility upgrade costs to ease local pressure.

To maintain good relations in the region, the Seattle-based company has also launched a $250,000 community fund managed by nonprofit organization ChangeX. The initiative targets STEM education and local environmental projects to ensure this large industrial project provides tangible benefits to residents of Shreveport.

“Amazon is making a long-term commitment to Louisiana because our state offers high-quality sites, strong infrastructure, and a skilled, hardworking workforce ready to support next-generation technological innovation,” said Louisiana Governor Jeff Landry. The state expects these campuses to generate tens of millions of dollars in tax revenue for schools and basic public services.

This expansion builds on Amazon’s existing operations in Louisiana, including four fulfillment centers and several solar projects. While local leaders praise the move as transformative, Wall Street continues to scrutinize whether the high costs of digital infrastructure can deliver short-term returns for shareholders.

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