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Monday, July 13, 2026

Amazon launches $35 billion data center expansion in Virginia

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Amazon will spend $35 billion over the next two decades to expand its data center business across Virginia, the company announced Friday, adding at least 1,000 jobs to a lucrative industry that has been rapidly growing in the state’s northern suburbs.

If approved by Virginia lawmakers, the tech giant’s cloud-computing arm, Amazon Web Services (AWS), stands to receive $140 million in economic incentives from the state and up to 15 years of tax breaks for equipment and software. (Amazon founder Jeff Bezos owns The Washington Post.)

“AWS has a significant presence in Virginia, and we are excited that AWS has chosen to continue their growth and expand their footprint across the Commonwealth,” Gov. Glenn Youngkin (R) said in a statement. “Virginia will continue to encourage the development of this new generation of data center campuses across multiple regions of the Commonwealth.”

Youngkin’s statement said “numerous localities” are under consideration for the new data center campuses and will be chosen at a later date. Neither AWS nor the Virginia Economic Development Partnership immediately responded to questions about how many locations were being considered and how many would ultimately be selected.

Data centers, which take the form of nondescript, highly secure facilities, contain hundreds or thousands of computers that act as a physical home for cloud computing and data storage.

More than 275 such facilities are believed to be located in Northern Virginia — particularly in Loudoun County, which is sometimes known as “Data Center Alley” — thanks to the region’s dense network connectivity, business-friendly policies and easy access to land and electricity.

Many local officials have touted the industry for increasing local tax revenue, but its growth has not been without controversy. As companies like AWS have gobbled up land to meet increased demand, residents have complained about noise, impacts on water and property values, and the high-voltage transmission lines needed to power the data centers.

A fight over turning a ‘rural crescent’ in Northern Virginia into a hub for data centers

Roger Wehner, AWS’s director of economic development, said the expansion will add to Virginia’s status as a leader in the cloud-computing industry and further cement the company’s presence in the state.

“Virginia is a world leader in innovation and cloud computing, thanks to its investment in a robust, highly-skilled workforce and emphasis on long-term public and private partnerships,” he said in a statement.

Wehner added that AWS has invested more than $35 billion in the state since establishing its first Virginia data centers in 2006. Now one of the largest private-sector employers in Virginia, Amazon is building its second headquarters in Arlington, with another $750 million in subsidies from the state potentially on the table.

This story is developing and will be updated.

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