Amazon has announced a substantial €10 billion ($10.75 billion) investment in Germany, targeting the expansion of its cloud services and retail operations in Europe’s largest economy. The US-based technology and retail giant aims to enhance its cloud infrastructure and capitalize on the growing potential of Artificial Intelligence (AI) technologies in the region.
A significant portion of the investment, €8.8 billion, will be allocated to Amazon Web Services (AWS) by 2026. This expansion is driven by the increasing demand for cloud services and AI-driven technologies in Europe. The investment underscores AWS's commitment to strengthening its presence and capabilities in the European market.
This ambitious investment is expected to generate over 4,000 jobs this year, contributing to the local economy and addressing the job market needs. The new positions will support both AWS and Amazon's retail operations, enhancing their service delivery and customer support capabilities.
German Chancellor Olaf Scholz welcomed Amazon's investment, emphasising it as a testament to Germany's attractiveness for international investors. He highlighted the importance of such investments in bolstering the country’s economy, particularly during challenging times.
Germany is currently grappling with an economic downturn triggered by high energy costs, rising interest rates, and under-investment partly due to bureaucratic hurdles. Amazon's investment provides a much-needed boost, signaling confidence in the country's economic prospects despite these challenges.
With this latest announcement, Amazon's total planned investments in Germany now amount to €17.8 billion. This includes previous commitments and future expansions, indicating the company's long-term strategic interest in the German market.
In addition to its investments in Germany, AWS is also considering multi-billion euro investments to expand its data centers in Italy, as reported by Reuters in May. This reflects Amazon's broader strategy to enhance its cloud infrastructure across Europe, meeting the growing demand for digital services and AI technologies.
