Amazon Commits €10 Billion to German Logistics and Cloud Expansion
Amazon’s €10 billion investment in Germany will enhance logistics and cloud infrastructure, creating 4,000 jobs and driving innovation.
Investment Overview
Amazon’s substantial €10 billion investment in Germany is set to bolster both its logistics network and cloud infrastructure. This strategic allocation of funds is aimed at fostering innovation and enhancing Amazon’s operational capabilities in the European market. The investment plan includes the creation of 4,000 new jobs across three new fulfillment centers in Germany, emphasizing the company’s commitment to economic growth and technological innovation.
Logistics Expansion
The logistics component of Amazon’s investment will see the establishment of three new fulfillment centers. These centers are located in Erfurt, Großenkneten, and Horn-Bad Meinberg. The Erfurt center has been operational since May 2024, the Großenkneten center since August 2023, and the Horn-Bad Meinberg center is expected to open in late summer 2024. These facilities are set to streamline Amazon’s logistics operations, ensuring faster delivery times and improved service for customers throughout Germany.
Cloud Infrastructure Development
A significant portion of the investment, amounting to €8.8 billion, will be directed towards expanding Amazon Web Services (AWS) cloud infrastructure in the Frankfurt region by 2026. This expansion aims to meet the growing demand for cloud services in Germany and across Europe. AWS’s focus includes enhancing its generative AI capabilities, which are expected to drive further innovation and efficiency in cloud computing.
Economic Impact
Amazon’s investment is projected to have a profound economic impact on Germany. The €8.8 billion allocated for cloud infrastructure alone is expected to contribute €15.4 billion to Germany’s GDP by 2026 and support over 15,200 full-time jobs annually in the local supply chain. This investment aligns with Amazon’s broader strategy of supporting digital skills and talent development across Germany, fostering a robust digital economy.
Innovation and Job Creation
Rocco Bräuniger, Amazon Germany Country Manager, emphasized the company’s ongoing commitment to innovation and job creation in Germany. Since 2010, Amazon has invested over €77 billion in the country, creating more than 40,000 permanent jobs by the end of 2024. The new investment reinforces Amazon’s role as a significant contributor to the German economy and a pioneer in technological advancements.
European Sovereign Cloud
In addition to the €10 billion investment, Amazon also announced a €7.8 billion investment in the European Sovereign Cloud, which will launch its first AWS region in Brandenburg by the end of 2025. This initiative aims to provide independent cloud services tailored to European customers, particularly addressing data sovereignty requirements. The Sovereign Cloud is designed to operate independently from other AWS regions, ensuring data and metadata remain within Europe, thus meeting regulatory standards for critical infrastructure operators.