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Amazon Doubles Down on AI, Plans to Spend $100 Billion by 2025

by THEFUTURE.TEAM

February 7, 2025

Amazon is making an aggressive push into artificial intelligence, planning to ramp up its capital spending to $100 billion next year as it races to keep up with rivals in the AI boom. The massive investment will largely go toward expanding data centers, networking infrastructure, and AI-driven hardware to support the growing demand for generative AI services.

AI Arms Race: Amazon Vs. Big Tech

The planned $100 billion spend surpasses Amazon’s $83 billion investment in 2023 and aligns with CEO Andy Jassy’s previous forecast that AI growth would drive a sharp increase in capital expenditures. Amazon has already launched a suite of AI products, including its Nova model series, Trainium chips, and Bedrock marketplace for third-party AI models.

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“In the fourth quarter, we spent $26.3 billion on capital expenditures, and I think that’s a reasonable benchmark for 2025,” Jassy told investors during the company’s latest earnings call. “The majority of that spending is going toward AI investments for Amazon Web Services (AWS).”

AI Spending War: The Competition Heats Up

Amazon’s spending spree puts it in direct competition with Alphabet, Microsoft, and Meta, which are also pouring billions into AI infrastructure:

Alphabet expects to invest $75 billion in AI development this year.
Microsoft plans to spend $80 billion in fiscal 2025 to expand its AI cloud capabilities.
Meta is allocating up to $65 billion for data centers and AI computing power.

Investor Concerns & Market Reactions

Despite Amazon’s ambitious AI push, the company’s latest earnings report disappointed investors, with weaker-than-expected sales projections sending shares down more than 4% in after-hours trading.

Jassy, however, remains confident, calling AI a “once-in-a-lifetime business opportunity.” He reassured investors that these high upfront costs would translate into long-term value, not just for Amazon’s AI efforts but also for improving its retail logistics and customer experience.

Rising Competition & Market Disruptions

Amazon’s spending strategy comes amid growing scrutiny of AI investments, especially after Chinese startup DeepSeek shook the market by developing a competitive AI model in just two months for under $6 million. The news sent shockwaves through the industry, wiping out $800 billion in market value from chip giants like Nvidia and Broadcom.

With AI development accelerating at a breakneck pace, Amazon and its competitors are betting that their massive investments will secure a dominant position in the future of AI. Whether investors will remain patient as costs soar is another question entirely.

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Cyprus Remains Among EU’s Lowest Renewable Electricity Producers

Cyprus remained among the European Union’s weakest performers in renewable energy adoption in 2025, with renewables accounting for 27.5% of gross electricity consumption, according to new data published by Eurostat.

Across the EU, renewable sources supplied 49.9% of gross electricity consumption last year, bringing the bloc close to generating half of its electricity from renewable energy.

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Cyprus Remains Among The EU’s Lowest Performers

Cyprus ranked among the EU countries with the lowest share of renewable electricity, ahead of only Malta at 11.2%, the Czech Republic at 19.2%, Luxembourg at 23.3% and Slovakia at 24.1%.

Across the country’s broader energy system, renewables accounted for 21.5% of gross final energy consumption in 2025.

EU Renewable Electricity Continues To Grow

Renewables supplied 49.9% of gross electricity consumption across the EU in 2025, up from 47.5% a year earlier. Since Eurostat began collecting comparable data in 2004, the share has risen from 15.9%.

Austria recorded the highest share at 90.8%, followed by Sweden at 89.2%. Denmark generated 77.7% of its electricity from renewable sources, followed by Portugal at 65.6%, Greece at 60.9% and Spain at 60.7%.

Overall Energy Transition Still Has Work Ahead

Renewables accounted for 26.2% of the EU’s gross final energy consumption in 2025, up from 25.2% in 2024 and 9.6% in 2004.

Despite the increase, the bloc remains below its legally binding target of 42.5% by 2030. According to Eurostat, achieving that goal will require an average annual increase of 3.3 percentage points between 2026 and 2030.

Sweden recorded the highest overall renewable energy share at 65.4%, followed by Finland at 53% and Denmark at 48.2%. Belgium recorded the lowest share at 14.9%, followed by Slovakia at 16.3% and Ireland at 17.2%.

Heating And Cooling Also Show Steady Progress

Renewable energy accounted for 27.4% of heating and cooling across the EU in 2025, the highest level since comparable records began in 2004. The share increased by 0.7 percentage points from 2024, slightly below the long-term annual average increase of 0.75 percentage points.