Amazon (AMZN) Stock: $12 Billion Louisiana Data Center Plan Explained

TLDR

• Amazon is investing $12 billion in data centers across northwest Louisiana, in Caddo and Bossier Parishes
• The project will create 540 full-time jobs and is being developed with STACK Infrastructure
• Amazon will fund 100% of construction costs plus up to $400 million in local water infrastructure
• 2026 capital spending is forecast at $200 billion, up from $131 billion in 2025
• AMZN is down 11% year-to-date; Wall Street has a Strong Buy consensus with a $282.21 average price target

Amazon is spending $12 billion to build data centers in Louisiana, marking one of its largest single-state infrastructure commitments to date.

The facilities will be built across Caddo and Bossier Parishes in the northwest of the state, in partnership with STACK Infrastructure. Amazon says it will cover 100% of the construction costs and is working with local utility Southwestern Electric Power Company on power infrastructure needs.

The project is expected to create 540 full-time jobs, with additional roles needed for ongoing support — electricians, HVAC technicians and similar trades.

Addressing Local Concerns

Data center projects have faced resistance in some communities due to strain on power grids and high water usage. Amazon is moving to address both.

The company plans to invest up to $400 million in public water infrastructure near the sites and says water use will be limited to cooling and operational purposes. It has also pointed to prior solar investments in Louisiana that added up to 200 MW of carbon-free energy to the state’s grid.

Part of a Much Bigger Spending Plan

The Louisiana announcement fits into Amazon’s broader capital expenditure strategy. During Q4 earnings earlier this month, Amazon said it expects to spend $200 billion in 2026 — up sharply from $131 billion in 2025.

That number hit AMZN stock hard. The stock dropped after the earnings release and is now down about 11% year-to-date, closing Monday at $205.27 after a 2.3% single-day drop.

Tech companies as a group have committed at least $630 billion in capital spending this year, driven by AI infrastructure demand. Louisiana is becoming a notable destination — Meta Platforms has also chosen the state for its Hyperion data center, part of a $27 billion joint venture with Blue Owl Capital.

What Wall Street Thinks

Despite the stock’s slide, analyst sentiment on AMZN remains firmly positive. Out of 43 analysts covering the stock, 40 rate it a Buy and three say Hold. The average price target is $282.21 — implying around 37.5% upside from current levels.

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

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