THE CRUNCH

Amazon has announced Built Together, a programme to invest $1 billion over the next five years in communities that host its data centres. The company says residents will decide how the money is used across education, job training, energy affordability, water solutions and local priorities. AWS CEO Matt Garman wrote that communities will be "in the driver's seat" in determining what is most useful to them.

The programme has three strands. Amazon says it will cover the shortfall after financial aid so residents near its data centres can pursue associate degrees at community colleges at zero out-of-pocket cost, with agreements already in place and a goal of reaching more than 300,000 students within a few months. It is also expanding Modular Training Centers that provide free certification for skilled trade workers, targeting training for up to 100,000 workers per year.

On energy, the company plans grants for schools, community buildings and homes to deploy heat pumps, insulation, batteries, solar installations and other efficiency measures. It claims these could cut electricity costs by around 20% to 40% annually, saving households up to $700 per year. Local nonprofits and community foundations will help direct the funds, with AWS CEO Matt Garman noting that priorities differ between rural Oregon, suburban Virginia and mid-size Ohio cities.

The announcement follows criticism of data centre developments, including reports of utility hikes and noise pollution, which Garman's post addressed by calling concerns "false" and "misleading". The timing is notable: some projects face local bans and polls suggest most Americans resist a data centre near their homes. Other developers have made similar offers, from discounted Starlink plans in Memphis to a Maryland site proposing a $110-million community package, which critics have called "bribes".

The scale question is harder to avoid. Amazon's $1 billion works out at $200 million per year, a small fraction of the trillions projected to be spent on data centres through 2050. The company itself is expected to spend $220 billion in capital expenditure on AI data centres this year, putting its community programme at roughly 0.1% of that AI infrastructure budget.

WHAT HAPPENS NEXT

Amazon says its community college agreements are expected to launch in the next few months.