Amazon To Invest Nearly $11 Billion In Germany To Boost Cloud, Logistics And R&D

Recently, Amazon announced that its cloud computing platform, Amazon Web Services or AWS, was set to invest €7.8 billion ($8.4 billion) in the AWS European Sovereign Cloud in Germany.

Now, building on that announcement, the company has revealed an additional investment of €10 billion in the country.

So, what is the new announcement about and how will it help the people and economy of the country? Let’s explore!
 

What Does Amazon’s €10 Billion Investment In Germany Consist Of?

 

• Through a news release published on its website, Amazon announced its plans to invest €10 billion ($10.69 billion) in Germany to boost its technological infrastructure, research and development (R&D) efforts and presence in the country.

• This will include driving innovation, expanding its logistics network and improving cloud infrastructure across the country.

• This includes a major chunk of the investment, around €8.8 billion ($9.4 billion), being used to continue to build, maintain and operate its cloud infrastructure for the AWS Europe (Frankfurt) Region.

• This will help meet growing customer demands for AWS technologies in Germany, including AI, while supporting an average of 15,200 full-time jobs annually in the local supply chain.

• Additionally, the move will also facilitate the creation of 4,000 new jobs at three new fulfillment centers.

• One will be in Horn-Bad Meinberg (North Rhine-Westphalia), which will open in late summer 2024, another one will be in Erfurt (Thuringia), which opened in May 2024 and the third one in Großenkneten, which opened in August 2023.

• The move will bring up the total number of permanent Amazon employees in Germany to over 40,000, spanning roles of all kinds, at all levels across more than 100 German cities and municipalities.

• It also brings up Amazon’s total confirmed planned investments in Germany to €17.8 billion ($19 billion), which has helped serve customers, create high-quality jobs and deliver a positive impact on the German economy.

• According to the release, “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 fulfillment technologies.”

• The investment will also benefit research teams at Amazon’s Development Center in Berlin, boosting their efforts to develop and enhance AI and robotics technologies.

 

What Did Amazon’s President And CEO Say?

 

• As per a post on LinkedIn, Andy Jassy, President And CEO Of Amazon, said, “Excited to share we’ll be committing another €10 billion to expand our AWS cloud infrastructure, logistics network, and Development Center in Berlin.”

• [Contd.] “This follows our recent €7.8 billion AWS European Sovereign Cloud investment and builds on our €77 billion in total investments in Germany between 2010 and 2023.”

• [Contd.] “Amazon has a long history in Germany, and we look forward to continuing to work together to support invention, customers, our employees, and communities here.”

 

What Did Amazon Executives In Germany Say?

 

• Rocco Bräuniger, Amazon Germany Country Manager, said, “Amazon came to Germany over 25 years ago, and we continue to invest in the country. With our teams continually focused on innovation, we’re helping German customers transform the way they work, live, connect and thrive.”

• [Contd.] “Our teams work hand-in-hand with state-of-the-art technologies to deliver for small businesses and customers, while AWS enables organizations of all sizes in Germany to grow their businesses and innovate using the cloud.”

• [Contd.] “And with that comes a positive impact for the country – and especially the communities where we operate – with a broad range of investments and jobs ranging from research and development to logistics and customer service.”

• Stefan Hoechbauer, Managing Director for Germany and Europe at AWS, said, “Germany is at the heart of innovation across Europe.”

• [Contd.] “AWS is more committed than ever to helping German customers lead and build new technologies and services using the wide variety of capabilities in the AWS Cloud, including generative AI.”

• [Contd.] “To address the growing demand for our services, we’re investing heavily in Germany’s digital infrastructure. This also includes our commitment to support digital skills and talent development programs across Germany and to partner with local communities on joint initiatives with a lasting impact.”

Do you think this move along with Amazon’s recent AWS European Sovereign Cloud investment has strengthened its position in the market and enhanced its competitive advantage? Do you think its rivals should make similar moves to keep competition alive?

Let us know in the comments below!