Amazon said Monday it will invest as much as $50 billion to expand its capacity to provide artificial intelligence and high-performance computing capabilities for its cloud unit’s U.S. government customers.

The project is slated to break ground in 2026 and will add nearly 1.3 gigawatts of capacity through new data centers designed for federal agencies, the company said in a blog.

As part of the investment, agencies will have access to Amazon Web Services’ AI tools, Anthropic’s Claude family of models and Nvidia chips as well as Amazon’s custom Trainium AI chips.

The move follows similar announcements from Anthropic and Meta to expand AI data centers in the U.S. Oracle, OpenAI and SoftBank announced their Stargate joint venture in January, which aims to invest up to $500 billion in AI infrastructure in the U.S. over the next four years.

AWS said the project will enable agencies to develop custom AI solutions, optimize datasets and “enhance workforce productivity.” AWS serves more than 11,000 government agencies, Amazon said Monday.

“This investment removes the technology barriers that have held government back and further positions America to lead in the AI era,” AWS CEO Matt Garman said in a statement.

Tech companies have earmarked billions of Dollars in a race to build out enough capacity to power AI services. Amazon in October boosted its forecast for capital expenditures this year, saying it now expects to spend $125 billion in 2025, up from an earlier estimate of $118 billion.

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