Amazon has announced a massive investment of €10 billion ($10.75 billion) in Germany, looking to expand its cloud infrastructure and logistics network amid rising demand for its services.
The majority of the €10 billion investment, amounting to €8.8 billion, will be dedicated to enhancing Amazon Web Services (AWS) cloud infrastructure by 2026.
A logo of Amazon Web Services is displayed during the Vivatech technology startups and innovation fair, at the Porte de Versailles exhibition center in Paris, on May 22, 2024.
Amazon Looks to Expand Cloud Infrastructure in Europe
This expansion will primarily focus on the AWS Europe (Frankfurt) Region to meet the growing customer demand for cloud services and AI-driven technologies in Germany.
In addition, Amazon announced last month a €7.8 billion investment in the AWS European Sovereign Cloud, which is set to launch its first AWS Region in Brandenburg by the end of 2025.
This new, independent cloud for Europe is expected to significantly boost Germany's economic output and technological capabilities.
The Amazon Investment's Economic Impact
According to the company, Amazon's investment is poised to create more than 4,000 jobs in Germany this year alone across three new fulfillment centers which began operations in August 2023.
By the end of the year, Amazon will employ over 40,000 permanent workers in Germany, offering diverse roles across more than 100 cities and municipalities.
The economic impact of these investments is substantial. According to a new AWS economic impact study, AWS's planned €8.8 billion investment is estimated to contribute €15.4 billion to Germany's GDP from 2024 to 2026. Furthermore, it will support an average of 15,200 full-time jobs annually within the local supply chain.
The AWS European Sovereign Cloud investment is expected to add €17.2 billion to Germany's GDP from 2024 to 2040, supporting approximately 2,800 jobs annually during this period.
German Government Praises Amazon's Investment
Reuters reports that German Chancellor Olaf Scholz praised the investment, emphasizing that it demonstrates the country's attractiveness for investors. The report also noted its significance as Germany faces economic challenges like high energy costs and interest rates.
Meanwhile, Rocco Bräuniger, Amazon Germany Country Manager, reaffirmed Amazon's 25-year commitment to Germany, stating that they continue to invest in the country, focusing on innovations that benefit customers.
Amazon's investment extends beyond infrastructure and logistics to include significant contributions to research and development (R&D). The company has invested more than €77 billion in Germany since 2010, which has contributed €50 billion to the country's GDP.
In Other News
Amazon is investing an additional $1.4 billion into its Housing Equity Fund, bringing its total investment to $3.6 billion. This fund supports the creation and preservation of affordable housing units in regions where Amazon has major corporate offices, including the Puget Sound, Arlington, Virginia, and Nashville, Tennessee.
Launched in 2021, the fund has already exceeded its original goal of 20,000 units, supporting 21,000 units to date. With this new investment, Amazon aims to support a total of 35,000 affordable homes through below-market-rate loans and grants.
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