Amazon announced a new investment of 10 billion euros in Germany, with the majority of the funds directed towards cloud computing. A significant portion of the investment, 8.8 billion euros, will be allocated to Amazon Web Services (AWS) division in southwestern Germany by 2026, with the remainder going towards logistics, robotics, and company offices. This investment is in addition to the 7.8 billion euros previously announced by AWS for the construction of a “sovereign cloud” center in Brandenburg, aiming to address concerns about data security and jurisdiction.
The expansion in Germany reflects Amazon’s commitment to growth in Europe, with recent investments in Spain and France as well. The company plans to hire thousands of new employees in Germany, increasing the total number of permanent workers to around 40,000 by the end of the year. The move is seen as a positive sign for Germany’s economy, reinforcing its appeal as a business-friendly environment. Chancellor Olaf Scholz highlighted the importance of attracting high-tech investments to boost competitiveness and drive economic growth.
Amazon’s dominance in cloud computing through AWS is evident, holding 31% of the market share as of 2023. However, competitors like Microsoft and Google are gaining momentum in the industry. The investments in cloud infrastructure, logistics, and data centers demonstrate Amazon’s commitment to expanding its reach and capabilities across Europe to meet growing demand for cloud services. With a strong presence in key European markets, Amazon is positioning itself for further growth and innovation in the tech sector.
Overall, Amazon’s investment in Germany signals a vote of confidence in the country’s business environment and technological potential. The continued focus on cloud computing and other high-tech fields aligns with Germany’s strategy to attract new investments and drive economic recovery. By expanding its operations and workforce in the region, Amazon is poised to strengthen its position as a leader in cloud services while contributing to the growth of the digital economy in Europe.
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https://techxplore.com/news/2024-06-amazon-invest-extra-bn-euros.html
