By David Shepardson
WASHINGTON, March 2 (Reuters) - Amazon unit Amazon Data Services is acquiring George Washington University's Virginia Science and Technology campus for $427 million, the university said on Monday, part of a rapid expansion of infrastructure to support artificial intelligence.
The campus student newspaper said the deed authorizes Amazon to build a data or information technology center on the site in Ashburn, Virginia.
Amazon did not immediately comment.
The company said in 2023 it
planned to invest $35 billion by 2040 to expand data centers in Virginia, adding to $35 billion it had spent on data centers in northern Virginia over the 10 years to 2020.
Tech firms' outlays have skyrocketed as they work to meet growing demand for AI software, computer chips and other infrastructure. The companies have committed at least $630 billion this year, and some investors fear a growing AI-led bubble.
George Washington University, which is based in Washington, said the deal allows the university the option to keep programs at the site for up to five years.
The university said the sale was "part of a broader strategy to strengthen GW’s long-term financial health and to invest more deeply in our academic mission and community" but did not resolve the underlying causes of its structural deficit.
GWU took actions last year to cut costs, including axing some jobs, curbing travel, reducing capital spending, and temporarily cutting salaries of the university’s leadership team. It added it will likely still need to get smaller to address financial issues.
(Reporting by David Shepardson; Editing by Sonali Paul)
