Amazon Commits Another €10B to German Cloud, Logistics Network

(Bloomberg) -- Amazon.com, the world’s largest provider of cloud computing services and data storage, said it will invest an additional €10 billion ($10.7 billion) into its cloud infrastructure and logistics network in Germany as the technology giant expands its network of data centers globally. 

The latest plans include €8.8 billion to build and maintain its cloud infrastructure for the AWS cloud computing business in the Frankfurt region by 2026, the company said in a statement on Wednesday. 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 was 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 this year. Amazon also said last month it would invest €15.7 billion in Spain through 2033 and €1.2 billion on infrastructure and computing in France. That’s in addition to projects in Mexico, the US, Saudi Arabia, and Singapore. 

AWS is facing increasing competition from rivals including Microsoft Corporation, 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 artificial intelligence programs.

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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.