Amazon announced on Wednesday that it plans to invest an additional €10 billion in Germany, with most of the funds allocated to its cloud computing division, AWS. This investment marks the latest move by the American tech giant to bolster its presence in Europe. Around €8.8 billion will be dedicated to cloud computing in southwestern Germany, while the remainder will support logistics, robotics, and company offices. This investment comes on the heels of a previous commitment of €7.8 billion made by AWS last month to establish a “sovereign cloud” center in Germany. The first sovereign cloud complex is slated to be operational in Brandenburg by the end of 2025.
This significant investment is aimed at addressing the concerns of European countries and public agencies wary of cloud computing due to data privacy issues, particularly the transfer of data to the U.S. With these recent investments, Amazon is set to increase its workforce in Germany by hiring thousands of new employees, bringing its total number of permanent staff in the country to around 40,000 by the end of the year.
German Chancellor Olaf Scholz commended the investments as a testament to Germany’s appeal as a business destination, emphasizing the government’s efforts to enhance competitiveness. As Europe’s leading economy, Germany views attracting new investments in high-tech sectors as essential for its economic recovery. Amazon has also announced plans to expand its data centers in Spain and enhance its cloud and logistics infrastructure for parcel delivery in France. While Amazon’s AWS currently holds a dominant 31 percent share of the cloud computing market, competitors like Microsoft and Google are gaining traction.
The investments in Germany underscore Amazon’s commitment to expanding its footprint in Europe and solidifying its presence in the region’s growing tech landscape. This strategic move aligns with Amazon’s broader ambition to strengthen its cloud computing offerings and support its diverse array of businesses. By investing in key markets like Germany, Amazon is positioning itself to capitalize on the evolving digital economy and establish itself as a leading provider of cloud services and tech solutions in the region.
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