To keep the train rolling on its recent AI-driven initiatives, Amazon (AMZN) is investing $20 billion into new…

To keep the train rolling on its recent AI-driven initiatives, Amazon (AMZN) is investing $20 billion into new data centers in Pennsylvania. In recent weeks, the company has pledged to aggressively expand its data center footprint. Already last week, it pledged $10B to invest in new data centers in North Carolina. “Generative AI is driving increased demand for advanced cloud infrastructure and compute power…” Amazon wrote last week in an announcement. The company also announced plans to invest more than $5 billion in its new cloud infrastructure in Taiwan.

Amazon has already set aside up to $100 billion this year on capital expenditures, with the majority of the shares going to AI-related projects. The e-commerce juggernaut has become one of the premier stocks of the Magnificent 7. Not only has its core business continued to thrive, but it has firmly embraced its position as one of the most diversified tech companies in the world. A part of that diversification, as of late, is in artificial intelligence. That’s where Amazon Web Services (AWS) has been huge.

Also Read: Amazon (AMZN) Secret Lab Builds AI Robots, Stock Eyes $241 Target

For Pennsylvania, Salem Township and Falls Township are the first communities identified as sites for future data centers/Amazon campuses. These will also create 1,250 high-skilled jobs and support thousands more in the AWS data center chain. The company did not specify a timeframe for its investment.

As the cloud industry continues to heat up in the face of massive AI demand, Amazon continues to head the charge and invest in further infrastructure. Investors have responded positively to Amazon’s efforts in expansion, yet AMZN stock is down 2% year-to-date. However, most of that drop came following sweeping tariff threats back in April. Now, AMZN is back up 11% in the last 30 days.

Amazon stock forecast models reflect optimism around these innovations, with 48 analysts setting price targets averaging $241.64. Current trading shows Amazon at $207.23, indicating potential 16.60% upside.