How is Amazon Expanding its Cloud and AI Presence in Germany?

Amazon is reportedly investing 10 billion euros (US$10.75bn) into Germany as it aims to expand the cloud infrastructure of Amazon Web Services (AWS), its computing unit.

As AI opportunities continue to grow across Europe, it is important for businesses to continue driving innovation and remain competitive. Amazon seeks to do this, as the investment will expand its logistics network and cloud infrastructure across Germany. As a result, the company will create 4,000 new jobs in 2024 alone.

By the end of 2024, Amazon will boast more than 40,000 permanent employees in Germany. The announcement brings the total amount of Amazon’s planned investments across Germany to 17.8 billion euros (US$19bn).

This also comes shortly after AWS announced a US$8.5bn investment into AWS European Sovereign Cloud to enable greater data residency across the European region – starting within Germany.

High European business demand for AI and cloud services

For the past 25 years, AWS has sought to drive economic development across Europe via its investment into infrastructure, jobs and skills. Likewise, Amazon has invested more than €150bn (US$163bn) in the EU and employed more than 150,000 people in permanent roles across the European Single Market.

The tech giant has invested more than €77bn (US$82.5bn) in Germany to better serve customers, create high quality jobs and deliver a positive impact on the German economy. Across four R&D sites in Aachen, Berlin, Dresden and Tübingen, teams work on products and services for AWS, Amazon Music, Fire TV, Alexa and fulfilment technologies.

Additionally, research teams at Amazon’s Development Centre in Berlin will benefit from lab expansions to develop and enhance AI and robotics capabilities.

“With our teams continually focused on innovation, we’re helping German customers transform the way they work, live, connect and thrive,” says Rocco Bräuniger, Amazon Germany Country Manager. “Our teams work hand-in-hand with state-of-the-art technologies to deliver for small businesses and customers, while AWS enables organisations of all sizes in Germany to grow their businesses and innovate using the cloud.”

A global commitment to AI

As part of this latest investment, AWS is planning to invest €8.8bn (US$9.43bn) by 2026. This will be to continue building, maintaining, and operating its cloud infrastructure for the AWS Europe (Frankfurt) region, which has been based in the Frankfurt Rhein-Main area since 2014. This will help meet growing customer demand for AWS technologies in Germany, including AI.

Digital transformation is set to rapidly continue across Europe, with increasing numbers of companies investing to build greater partnerships with existing companies within the region. The UK, France and Germany are currently the leading nations receiving foreign direct investment (FDI) for digital technology projects, according to a 2024 EY survey.

Cloud and AI will continue to surge across Europe as it contributes to greater operational efficiency and cost-saving measures. According to McKinsey in April 2024, more than 90% of European companies ranked their cloud programmes as a priority moving forward.

Greater AI software in cloud environments can help users enjoy greater interconnectivity and ultimately enhance overall productivity.

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