Amazon has announced a significant €10 billion ($10.75 billion) investment in Germany to enhance its cloud infrastructure and logistics network. The majority of this investment, totaling €8.8 billion, will be focused on improving Amazon Web Services (AWS) cloud infrastructure by 2026.
Specifically, Amazon plans to expand its AWS Europe (Frankfurt) region to meet the increasing customer demand for cloud services and AI-powered technologies in Germany. In addition to this, the company recently announced a €7.8 billion investment in the AWS European Sovereign Cloud, which will launch its first AWS region in Brandenburg by the end of 2025. This independent cloud for Europe is expected to have a significant impact on Germany’s economic output and technological capabilities.
The investment by Amazon is projected to create over 4,000 jobs in Germany this year, with three new logistics centers already operational since August 2023. By the end of the year, Amazon is expected to employ more than 40,000 permanent workers in Germany across various positions in over 100 cities and municipalities. The economic impact of these investments is substantial, with an estimated contribution of €15.4 billion to Germany’s GDP from 2024 to 2026 and support for an average of 15,200 full-time jobs within the local supply chain.
Additionally, the investment in the AWS European Sovereign Cloud is forecasted to add €17.2 billion to Germany’s GDP from 2024 to 2040, supporting around 2,800 jobs annually during this period. German Chancellor Olaf Scholz praised the investment as a demonstration of the country’s attractiveness to investors, particularly in the face of economic challenges such as high energy costs and interest rates.
Rocco Bräuniger, Country Manager of Amazon Germany, reiterated the company’s commitment to investing in Germany and focusing on innovations that benefit customers. Amazon’s investments in Germany go beyond infrastructure and logistics, with significant contributions to research and development (R&D) amounting to over €77 billion since 2010, contributing €50 billion to the country’s GDP.
In other news, Amazon has increased its Fair Housing Fund investment by $1.4 billion, bringing the total investment to $3.6 billion. This fund supports the creation and preservation of affordable housing units in regions with major Amazon corporate offices. Launched in 2021, the fund has already surpassed its target of 20,000 units, backing 21,000 units to date. With this additional investment, Amazon aims to support a total of 35,000 affordable homes through loans and grants at below-market rates.
Overall, Amazon’s investment in Germany and its continued commitment to innovation and community support highlight the company’s dedication to growth and sustainability in the region.
Article Source
https://www.techtimes.com/amp/articles/305849/20240619/amazon-unveils-massive-11-billion-europe-investment-expand-aws-cloud.htm
