Amazon.com, Inc. is reportedly acquiring George Washington University’s Virginia Science and Technology campus in a $427 million dea.

Amazon, through its Amazon Data Services unit, is purchasing the campus in Ashburn, a key hub for U.S. data center infrastructure, Reuters reported on Monday.

A campus student publication reported that the deed allows Amazon to develop a data or information technology center on the site.

Amazon did not immediately respond to Benzinga’s request for comments.

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The reported acquisition aligns with Amazon’s broader cloud and AI expansion plans.

In 2023, the company said it would invest $35 billion in Virginia data centers by 2040, adding to the $35 billion it had already spent in Northern Virginia over the previous decade, the report said.

Tech companies have sharply increased capital expenditures to meet surging demand for AI software, advanced chips and computing power.

Industrywide commitments have reached at least $630 billion this year, raising concerns among some investors about a potential AI-driven bubble.

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George Washington University said the sale is part of a broader effort to bolster its long-term financial stability and refocus on its academic mission.

The university retains the option to operate programs at the campus for up to five years.

GWU has been grappling with a structural budget deficit and last year cut jobs, reduced travel and capital spending and temporarily lowered leadership pay.

It said additional downsizing may be necessary to address ongoing financial challenges.

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