Amazon commits €10 billion for cloud and logistics expansion in Germany

The announcement comes at a critical time when Germany addresses economic challenges such as high energy costs and rising interest rates.

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Amazon announced plans to invest €10 billion ($10.75 billion) in Germany, emphasising the country’s growing importance in cloud computing and retail. The majority of this investment, totalling €8.8 billion, will be allocated by 2026 to expand Amazon Web Services (AWS), particularly focusing on enhancing cloud infrastructure to support AI technologies across Europe.

German Chancellor Olaf Scholz hailed the investment, highlighting its potential to create over 4,000 jobs this year. That move comes amidst Germany’s economic challenges, including an energy crisis and bureaucratic hurdles that have hindered investment.

Amazon’s latest commitment brings its total planned investments in Germany to €17.8 billion, underscoring its long-term strategic focus on the country. Earlier reports indicated AWS’s consideration of multi-billion investments to expand data centres in Italy, further illustrating Amazon’s broader ambitions in Europe’s digital infrastructure sector.

The investment signals Amazon’s confidence in Germany’s business environment and its strategic position in Europe, aiming to bolster AWS’s AI and cloud services capabilities to meet increasing regional demand. That is expected to boost employment and enhance Amazon’s technological footprint in Europe’s largest economy.