Amazon to invest $14.5 billion to expand cloud and logistics in Germany
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Amazon is putting billions of dollars into infrastructure as the industry races to meet the AI boom.
PHOTO: REUTERS
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LONDON – Amazon, the world’s largest provider of cloud computing services and data storage, said it will invest an additional €10 billion (S$14.5 billion) into its cloud infrastructure and logistics network in Germany as the technology giant expands its network of data centres globally.
The latest plans include €8.8 billion to build and maintain its cloud infrastructure for the Amazon Web Services (AWS) cloud computing business in the Frankfurt region by 2026, the company said in a statement on June 19. The commitment is in addition to the company’s plans to spend €7.8 billion by 2040 to build a sovereign cloud business in the country.
While the announcement resulted from part of a meeting between Amazon’s chief executive officer Andy Jassy and German Chancellor Olaf Scholz, Amazon has made several similar commitments across the globe in 2024.
Amazon also said in May it would invest €15.7 billion in Spain until 2033, and €1.2 billion on infrastructure and computing in France. That is in addition to projects in Singapore, Mexico, the United States and Saudi Arabia.
In Singapore, Amazon announced in May it would invest $12 billion over the next four years
AWS is facing increasing competition from rivals including Microsoft, which is mounting its own global expansion, as the industry races to increase data processing and storage capacity to meet greater computing needs driven by the boom in AI programs.
European regulators are steadily pushing cloud companies to store their data within the bloc to address privacy and security concerns. Amazon’s announcement in May was for spending to help build out a European sovereign cloud, which will be controlled exclusively by people inside the European Union. BLOOMBERG
