Amazon to invest additional 10 billion euros in Germany, says ET Brand Equity

Amazon said on Wednesday it would invest an additional 10 billion euros ($10.7 billion) in Germany, most of it in cloud computing, marking the U.S. tech giant's latest major investment in Europe.

A total of 8.8 billion euros will come from Amazon's cloud computing division AWS and be invested in southwestern Germany by 2026, with the rest going into logistics, robotics and corporate offices.

The investment comes on top of the 7.8 billion euros AWS announced last month to build a “sovereign cloud” center in Germany.

The first sovereign cloud complex will be located in the state of Brandenburg and is expected to be operational by the end of 2025.

The new system is intended to address concerns from some European countries and public authorities who have been reluctant to use cloud computing for fear that their data would be transferred to other jurisdictions, particularly the United States.

Amazon said its recently announced investments will see it hire thousands of new workers in Germany, bringing its total number of full-time employees in the country to about 40,000 by the end of the year.

Chancellor Olaf Scholz said at the X that the investments showed Germany remained an “attractive business location.”

“As a government we are committed to exactly this – strengthening competitiveness,” he said.

Germany, Europe's largest economy, sees attracting new investment into its tech sector as crucial as it struggles to emerge from a period of stagnation.

The tech giant also recently announced major investments in the expansion of its data centers in Spain and in the development of cloud and logistics infrastructure for its French parcel delivery system.

E-commerce pioneer Amazon's AWS will also dominate cloud computing, with 31% of the market by the end of 2023, according to Stocklytics.

But rivals Microsoft and Google are gaining ground.