Tech giants are trying to win over the support of communities that oppose data centers, while investing billions of dollars in building the infrastructure that will support their ambitions in artificial intelligence. Amazon's latest move is to invest over $1 billion over the next five years in vocational training, free community colleges, and improvements in energy efficiency.
Amazon Web Services ( AWS ) CEO Matt Garman announced the Built Together plan in a company blog post on October 2nd and defended the company's data center expansion. He compared this expansion to public interest projects such as the interstate highway system, stating that Amazon understands the community's "concerns" about data centers. However, he noted that more than 100 proposed measures to suspend data center construction could put the United States at a disadvantage in the race for artificial intelligence.
"If these measures are implemented, the United States may be casting its own ticket to lose this race, and the consequences will last for several generations," writes Garman. "As a nation, we cannot afford to put ourselves in such a position."
Amazon is not the only company trying to make the boom in data centers of hyperscale cloud service providers more acceptable to the local communities where they are located. In January, Microsoft pledged to cover the costs related to electricity and the power grid for its facilities, while Meta stated that it has invested over $550 million in the water supply and wastewater treatment infrastructure of the communities where its data centers are located.
What does Amazon offer?
Built Together mainly addresses common complaints regarding data center projects – such as concerns that they will increase energy bills and put additional strain on local infrastructure, without providing residents with sufficiently lasting benefits.
These complaints are becoming increasingly difficult for large-scale cloud service providers to ignore. In July, New York State imposed a statewide suspension order on new large data centers; in major data center markets such as Virginia, opposition is also spreading. According to a poll by The Washington Post and Schar School, in March only 35% of people said they would feel at ease if a new data center were built locally. Amazon itself is also facing resistance in Virginia at Loudoun County; local officials oppose a proposed 800,000-square-foot data center project on the former George Washington University Virginia Science and Technology campus.
Built Together is an attempt by Amazon to provide benefits to the local community in a more direct manner in response to these objections. Amazon stated that the company will cover the remaining costs of community college for certain certificate programs and associate degree programs after students receive scholarships, including programs in HVAC, fiber optics, and information technology. The company estimates that over 300,000 students will have this opportunity in the next five years.
The company also stated that its Skilled Workers Center plans to train up to 100,000 workers per year for relevant positions at Amazon and its construction partners by the end of 2028.
Amazon also plans to provide funding for energy-saving renovations for more than 30,000 households, as well as over 300 schools and community buildings. Local officials and community organizations will help direct the funds towards projects such as roads, parks, fire-fighting equipment, affordable housing, and food assistance.
"We will work with county officials and trusted community organizations to identify the investments that will have the greatest impact, and provide annual funding and transparent reports on the results," writes Garman. "This is not about Amazon deciding what the community needs; rather, it's about Amazon providing resources so that the community can make its own decisions."
Amazon also used this announcement of Built Together as an opportunity to counter some of the reasons for the rebound. As Garman writes, data centers have been unfairly blamed for driving up electricity and water costs, while the real reason for the increase in energy bills in some states is the aging power grids.
"With rising energy costs, the main reason is that the power grid is outdated and has not been invested in or expanded before the demand arrives," he wrote.
He also stated that Amazon's average data centers use less than 13,000 gallons of water per day and claimed that these facilities bring tax revenue and construction job opportunities to the local communities. Amazon estimates that in St Joseph County in Indiana, over $3 billion in taxes will be paid by the company during the same period, whereas the previous use of that land would only generate $1.2 million in tax revenue.
