Amazon Web Services (AWS) has announced plans to invest over $1bn across five years in communities hosting its US data centres, as the company faces increasing scrutiny over the environmental and economic impact of its operations, reported Reuters.

The initiative is focused on addressing concerns about electricity and water usage linked to data centre activity.

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Communities across the US have raised issues about the power consumption and utility costs associated with data centres, especially given their role in supporting AI workloads.

Local opposition has led to over 100 moratoriums on new data centres being considered, highlighting growing resistance as the sector expands. These debates have emerged as a political issue in advance of the US midterm elections.

Between 2011 and 2025, Amazon invested $276bn in data centre infrastructure, with major developments and expansion schemes currently underway in states including Louisiana, Indiana, Mississippi, North Carolina, and Virginia.

The company’s new investment package is set to target areas such as education, job training, energy affordability, and water and energy conservation, tailored to priority needs in affected regions.

AWS CEO Matt Garman said: “There is ⁠urgency to this data centre buildout because we aren’t the only country that sees the benefits of AI for the economy and national security, and the countries ⁠that lead in AI will shape it and get the most from it in the short and long run.”

AWS has reiterated its target to become water positive across its data centres by 2030, aiming to return more water to local communities than its facilities consume.

The company reported it is currently 75% of the way towards achieving this goal.

Last month, Amazon and Qualcomm Technologies announced a partnership to design customised silicon and optical connectivity components, specifically tailored for AI inference tasks in AWS data centres.