Amazon will invest $1 billion in communities where it builds data centers over the next five years, the company announced Friday. The funds will support free community college and workforce training for local residents, along with energy efficiency upgrades.
“We understand why there is apprehension in some communities about the construction of large data centers, particularly concerns about energy and water impacts and potential cost burdens for local residents,” Amazon spokesperson Meghann B. Hinton said in a statement. “We know we have to do our part to be good neighbors — our investments are intended to help communities prepare for the opportunity that comes with data centers while also addressing the real concerns that residents have.”
The new investment program is intended to accompany Amazon’s existing commitments: the company has pledged to be powered by 100 percent renewable energy by 2025 and to reach net-zero carbon by 2040. Amazon said the $1 billion will be used for community college tuition, workforce and technical training, energy efficiency projects and other community needs tied to data center development.
The announcement follows long-running complaints in some towns and counties that data centers strain local power grids and water supplies, raise utility costs and lead to higher housing prices.
Amazon said it will begin working with community partners immediately to determine how the investments will be deployed in specific locations and to select initial pilot communities. The company did not disclose which communities would be selected first or how much funding any single community might receive.
Amazon’s cloud computing arm, Amazon Web Services (AWS), is among the largest buyers of electricity in the United States. Data centers supporting cloud services consume significant power and, in many cases, substantial water for cooling, which has drawn scrutiny from local officials and residents where facilities are located.
In recent years, communities in states including Virginia, Ohio and across the Midwest have voiced concerns about the pace of data center construction and their impacts on local infrastructure and budgets. Activists and some elected officials have pushed for stricter regulations, higher fees or limits on new data center development.
Amazon said it will also continue investments in renewable energy projects and infrastructure to support power needs in areas where data centers are sited. The company noted its broader sustainability plans, including investments in wind and solar projects and grid-support technologies.
Analysts said the $1 billion pledge could help alleviate some community concerns but questioned whether the commitment will be sufficient given the scale of electricity and water demands from large clusters of data centers.
Source: thehill.com
