Amazon plans to invest 10 billion euros ($10.75 billion) in response to the growing demand for its cloud services and retail goods in Germany, the company announced on Wednesday. The majority of this investment, amounting to 8.8 billion euros, will be allocated by 2026 to expand Amazon Web Services’ (AWS) cloud infrastructure, driven by the rising potential of AI technologies in Europe.
German Chancellor Olaf Scholz commended the investment for its role in creating over 4,000 jobs this year and enhancing the country’s appeal to investors. This commitment comes as Germany faces an economic downturn marked by high energy costs, rising interest rates, and bureaucratic delays hindering investment.
This new commitment increases Amazon’s planned investments in Germany to a total of 17.8 billion euros. In addition, AWS is also considering significant investments to expand its data centers in Italy, according to a Reuters report in May.
Amazon’s cloud division announced earlier this year that its planned investment is projected to add €17.2 billion to Germany’s GDP by 2040, while also supporting an average of 2,800 full-time equivalent jobs annually in local German businesses.
Amazon Web Services (AWS) also intends to create “highly-skilled permanent roles” for the development and operation of its European Sovereign Cloud. These positions will include software engineers, systems developers, and solutions architects.
This cloud service aims to comply with EU data regulations by ensuring sensitive data remains within Europe and is managed exclusively by EU-resident employees.
