- As growing demand of cloud services and retail goods in Europe’s largest economy, Amazon is to invest 10 billion euros ($10.75 billion).
- This investment will boost Germany’s economy and investment attractiveness.
OUR TAKE
Amazon, which has invested extensively around the world, has recently set its sights on Germany. Amazon will expand its logistics network this year, creating 4,000 new jobs at three distribution centers in Germany. This is supposed to give Amazon more than 40,000 permanent employees in Germany, spread across more than 100 cities in the country.
–Zora Lin, BTW reporter
What happened
Amazon, the US technology and retail company, will invest $10.75 billion to meet growing demand for its cloud services and retail goods in Europe’s largest economy, reported on June 19.
Because it sees a growing trend in artificial intelligence-driven technology in Europe, $9.45 billion of this investment will be used to expand the cloud infrastructure of its computing division, Amazon Web Services (AWS), by 2026. AWS is considering multi-billion investments in the expansion of its data centres in Italy.
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Why it’s important
The German government is grappling with an economic downturn triggered by high energy costs and interest rates, as well as a lack of investment partly caused by red tape. Chancellor Olaf Scholz hails the investment, which will create more jobs, as making Germany more attractive to investors.
After the announcement, Amazon’s total planned investment in Germany will reach $19.12 billion. Rocco Bruniger, country manager for Amazon Germany, says that having been in Germany for more than 20 years, the Amazon team has worked hand in hand with cutting-edge technology companies to serve small businesses and customers, and AWS has made a positive impact in Germany by enabling organizations of all sizes to use the cloud to grow their business and innovate. It also creates a wide range of investment and employment opportunities.
