HERNDON, Va. — A subsidiary of Amazon.com Inc. is expanding in Fairfax County and expects to provide 500 new jobs.

Virginia Gov. Bob McDonnell announced Wednesday that Amazon Web Services plans to open an office in the Herndon area.

Amazon Web Services provides cloud computing services to business and government customers. On Tuesday the company announced it had received authority to operate under a government program designed to streamline cloud computing services.

The company was lured in part from a $500,000 grant from the Governor’s Opportunity Fund. The state grant will be matched by county funds that will be used to improve an intersection in Herndon near the office site.

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