Round Rock in Texas to house Amazon’s new data centre

Amazon continues with the data centre boom with plans to invest in new facilities in Round Rock, Texas to propel the region's growth

Global giant Amazon has unveiled a revised development plan for a vast area of land in Round Rock, Texas, opting for a data centre instead of the distribution centre as it initially envisioned. This strategic shift marks a significant change of course for the company in the Austin area.

The proposed data centre, situated east of East McNeil Road and north of the State Highway 45 toll road, will encompass approximately 150 acres. This decision comes over a year after Amazon initially paused its plans for a $250m distribution centre after the company confessed it had overbuilt on logistics space.

An increase in demand for cloud services

The reason behind Amazon's pivot towards a data centre lies in the increased demand for cloud computing services. As more and more businesses embrace digital transformation, the need for robust and scalable data infrastructure intensifies. By establishing a data centre in Round Rock, Amazon aims to capitalise on this growing demand and enhance its cloud computing offerings in the region.

The development of a data centre is expected to bring numerous economic benefits to the Round Rock area. The project is anticipated to generate substantial job opportunities, both during the construction phase and upon completion. Additionally, the presence of a data centre could attract other tech-oriented businesses to the region, further stimulating economic growth.

Amazon's decision to pursue a data centre in Round Rock reflects the company's recognition of Texas's growing significance in the tech industry. The state already boasts a thriving tech ecosystem, fueled by a supportive regulatory environment, a skilled workforce, and access to top-tier universities.

Enhancing logistic capabilities

As reported by BizJournal, Bradley Dushkin, Round Rock's Director of Planning & Development Services at City of Round Rock, confirmed in an email that Amazon restarted the annexation and zoning process and that the company is on track for City Council consideration in January. He said the "only notable difference" between the new PUD request and last year's iteration is the proposed addition of the data centre on the southern half of the property. 

Amazon plans to develop a last-mile distribution centre on the northern half of the property, which would be part of the first phase of development and will serve as the cornerstone of Amazon's logistics operations in the region. This facility will play a pivotal role in streamlining the final leg of product delivery, ensuring that customer orders reach their doorsteps swiftly and efficiently.

The southern half of the property holds the potential for a data centre, a decision that Amazon has yet to finalise. The company's plans for the southern section remain fluid, pending further evaluation and market assessments.

Amazon's move to establish a last-mile distribution centre in Round Rock aligns with its broader strategy to enhance its logistics capabilities and cater to the growing demand for ecommerce services. 

The potential development of a data centre in the second phase further underscores Amazon's commitment to expanding its cloud computing footprint. A data centre in Round Rock would provide Amazon with a strategic hub to serve its customers in the region, offering enhanced access to cloud-based infrastructure and services.

While Amazon's shift from a distribution centre to a data centre represents a change in plans, the company remains committed to its presence in the Round Rock area. The proposed data centre underscores Amazon's confidence in the region's potential and its eagerness to play a role in its continued growth.


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