Amazon to Invest Additional Ten Billion Euros in Germany, Majority Allocated to Cloud Internet Services
The US corporation Amazon has announced plans to invest another ten billion euros in Germany, with the majority of the funds designated for its cloud internet services. This investment also includes allocations for the expansion of logistics robotics and the establishment of two new corporate headquarters. The German Amazon headquarters in Munich revealed these plans on Wednesday, highlighting the company's commitment to further growth and innovation in the region. By the end of this year, the German Amazon workforce is projected to reach 40,000 permanent employees, a significant increase from around 36,000 in 2023. Founded in 1994, Amazon now boasts a global workforce of over 1.5 million employees, with a large majority based in the US. However, Germany remains a crucial foreign market for the company, driving substantial investments and developments in various sectors.In May, Amazon announced the creation of a new cloud for Europe called AWS European Sovereign Cloud, with an initial investment of 7.8 billion euros. This initiative will have its first region located in Brandenburg, further solidifying Amazon's presence and technological advancements in the region. The total investments planned in Germany currently amount to 17.8 billion euros, reflecting the company's long-term commitment to growth and innovation.A significant portion of the newly announced ten billion euros will be dedicated to expanding the operations of Amazon Web Services (AWS) in the RheinMain area, with plans to spend 8.8 billion by 2026. AWS's business model focuses on providing server operations and IT services in major data centers for corporate clients. The allocated funds cover expenses for construction works, data center operations, as well as imports of machinery and software, emphasizing Amazon's push for infrastructural development and technological advancement.Despite facing competition from Microsoft's Azure, AWS remains the leading global market player in cloud services, holding a market share of 31 percent. Amazon anticipates a continued growth in demand for cloud services in Germany, positioning the country as a key hub for technological innovation and expansion. Stefan Höchbauer, AWS CEO for Germany and Central Europe, emphasized the country's significance in driving European innovation and progress.In addition to its focus on cloud services, Amazon is expanding its presence in online retail and logistics. In May, a new logistics center was launched in Erfurt, with plans for another center in Horn-Bad Meinberg in North Rhine-Westphalia later this summer. Furthermore, a new logistics center in Großenkneten, Lower Saxony, began operations in August 2023, underscoring Amazon's commitment to logistical efficiency and customer service.To accommodate its growing workforce and operations, Amazon is establishing two new corporate headquarters in Berlin and Munich. This consolidation aims to streamline operations and enhance collaboration among employees. Amazon's total investments in Germany since 2010 have exceeded 77 billion euros, reflecting the company's long-standing commitment to the region's growth and development. With these strategic investments and expansions, Amazon is poised to further strengthen its presence in Germany and drive technological innovation and economic growth in the region.
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