Amazon (AMZN) Stock to Invest $12 Billion in Louisiana Data Centers

TLDR

• Amazon plans to invest $12 billion in data centers across Caddo and Bossier Parishes in northwest Louisiana
• The project will create 540 full-time jobs and is being built with STACK Infrastructure
• Amazon will cover 100% of construction costs and invest up to $400 million in local water infrastructure
• The company expects $200 billion in total capital spending in 2026, up from $131 billion in 2025
• AMZN stock is down roughly 11% year-to-date, with Wall Street holding a Strong Buy consensus and an average price target of $282.21

Amazon (AMZN) is putting $12 billion into Louisiana, announcing plans to build data center campuses across Caddo and Bossier Parishes in the northwest part of the state.

The company is partnering with STACK Infrastructure to construct and develop the facilities. Amazon says it will cover 100% of the costs tied to the new campuses.

The project is expected to create 540 full-time jobs. Amazon also says additional roles — electricians, HVAC technicians — will be needed to support the sites.

Amazon.com, Inc., AMZN

Amazon is also working with local utility Southwestern Electric Power Company (SWEPCO) on any electrical infrastructure the buildout requires.

The announcement comes with some community pushback in the background. Data centers are known to put pressure on local power grids and require large volumes of water to keep equipment cool.

Amazon is trying to get ahead of those concerns. The company plans to invest up to $400 million in public water infrastructure in the region and says water use will be limited to cooling and operational needs.

It has also pointed to existing solar energy investments in Louisiana, which it says have added up to 200 MW of carbon-free energy to the grid.

Amazon’s Broader Capital Spending Push

This Louisiana announcement is part of a much larger spending plan. Amazon said during its Q4 earnings earlier this month that it expects capital expenditures to hit $200 billion in 2026 — up from $131 billion in 2025.

That number rattled investors. AMZN stock dropped after the announcement and is now down about 11% year-to-date. On Monday alone, it fell 2.3% to close at $205.27.

Louisiana Is Becoming an AI Infrastructure Hub

Amazon isn’t alone in picking Louisiana. Meta Platforms has also selected the state for its Hyperion data center, part of a $27 billion joint venture with Blue Owl Capital.

Tech companies collectively have committed at least $630 billion in capital spending this year as demand for AI infrastructure continues to grow.

Despite the stock’s recent slide, Wall Street remains bullish on Amazon. Of 43 analysts covering the stock, 40 have a Buy rating and three say Hold. The average price target sits at $282.21, implying roughly 37.5% upside from current levels.

AMZN stock is down 11% year-to-date as of the latest close.

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