AWS plans Virginia data center

Started by #vikup34, Jun 17, 2022, 08:25 AM

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AWS has filed to build a new data center in Northern Virginia.

InsideNova reported last week that that AWS filed to build an approximately 220,000-square-foot (20,400 sqm) single-story data center in Warrenton.

Data Center Dynamics reports that Amazon revealed it wanted to buy the plot and build a data center in Warrenton in June of 2021, but only if the town was able to change zoning laws to allow for such buildings in the area.

AWS did acquire the 41.7-acre plot of land for $40 million in September 2021 after the town changed its zoning laws to allow for data centers.

DCD also reported that this application followed Dominion Energy's proposal — which it submitted within a week of Amazon's application — to build a substation nearby. Amazon stated it would utilize public water and connect to the town's sewer system, but the company would pay for the required infrastructure investment.

This new facility will be a further addition to Amazon's existing significant data center presence in Northern Virginia.


Over the past 15 years, the AWS cloud provider has spent $37 billion on infrastructure construction in northern Virginia (USA).
Construction of this scale has had an important impact on the regional economy. Usually hyperscalers do not share detailed information about their data center costs, but in this case we are talking about a report that aims to show how cooperation between local authorities and the data center industry can positively affect the development opportunities of the region.

Today, Amazon is one of the tech giants capable of playing a leading role in the creation of cloud systems. There are now more than 60 data centers in the northeast of the state, forming the world's largest cloud space. At the same time, the cluster in Northern Virginia is only part of the AWS infrastructure, which includes six cloud regions in the United States and 25 around the world.
But, it is the US-East region that is historically the most important and largest for AWS, since six availability zones (AZ) are deployed here at once.

Cloud web service providers have played an important role in the development of financial systems around the world during the pandemic. At the same time, AWS's earnings in 2020 amounted to $45 billion — more than many Amazon units related to trade.
Amazon's activities in the state allow us to focus on two facts — according to the company, the creation of cloud clusters brings great advantages for local economies, but at the same time requires financing in volumes available to only a few companies.

The expansion of the Amazon project in Northern Virginia required the purchase of local land, the construction of more data centers - this allows us to meet the corporate demand for cloud solutions with a margin. A direct consequence is the emergence of jobs among local residents and an increase in local costs for infrastructure maintenance, security, as well as an increase in tax revenues to local budgets:

In 2020, AWS paid more than $230 million in property taxes for data centers located in several counties of Northern Virginia. The company accounts for about 22% of all property tax deductions received by these districts in fiscal year 2020. However, it should also be taken into account that the districts have historically provided tax benefits;
In 2020, AWS investments in the construction of new facilities here and the expansion and support of the former ones allowed to save thousands of full-time jobs and even more in related industries;
By 2023, Amazon plans to build 15 new "green" solar farms in Virginia with a total capacity of 1.43 GW.
The $37 billion investment in Virginia is the largest for a single state. Such large expenditures correspond to the large—scale needs for the costs necessary to create the appropriate infrastructure - competing companies like Google, Microsoft and Facebook* usually spend from $650 million to $5 billion on the construction of each cloud campus. However, recently the capital investments of the entire industry have grown by almost a third.