UPDATED 16:22 EDT / JUNE 19 2024

INFRA

Amazon to spend €10B on expanding its cloud and logistics operations in Germany

Amazon.com Inc. will spend €10 billion, or about $10.7 billion, to upgrade its data center infrastructure and logistics network in Germany.

The company detailed the investment today. The announcement comes a few weeks after Amazon Web Services Inc. revealed plans to spend €7.8 in Germany on its AWS European Sovereign Cloud platform. The platform, which AWS first detailed last year, will provide access to cloud data centers optimized for heavily regulated organizations.

Under the new €10 billion investment plan, AWS will add 4,000 employees to its German logistics network by year’s end. The new hires will work at fulfillment centers in the cities of Horn-Bad Meinberg, Erfurt and Großenkneten. Amazon detailed that the recruiting push will grow its workforce in Germany to more than 40,000 employees.

Another portion of the €10 billion investment will be used to “build, maintain, and operate” AWS’ cloud data center cluster in the Frankfurt metropolitan area. The cluster currently comprises three Availability Zones, AWS infrastructure sites that can host one or multiple data centers. The sites are isolated from one another at the infrastructure level, which reduces the chances that a localized outage at one location will affect the others. 

AWS’ Frankfurt cloud region also includes two Local Zones. Those are miniature Availability Zones that are located closer to users than standard cloud data centers, which allows network traffic to reach them faster. Local Zones are typically used to host latency-sensitive applications.

Under a separate initiative announced last month, AWS will invest $7.8 billion in Germany through 2040 to support the rollout of its European Sovereign Cloud. The first data center that will be built as part of the project is expected to come online in the state of Brandenburg by the end of next year. 

According to AWS, European Sovereign Cloud facilities will be operated solely by personnel based in the European Union. Previously, the company detailed that the platform will store technical metadata about customers’ cloud environments within the bloc. The European Sovereign Cloud is geared toward government agencies and enterprises in highly regulated industries.

Alongside its local logistics hubs and cloud facilities, Amazon operates a network of four engineering centers in Germany. The company today details plans for an “extension of labs” at its research and development campus in Berlin. The goal of the initiative, it detailed, is to support the center’s work on robotics and artificial intelligence projects. 

AWS has rolled out several new AI services to its public cloud in recent years. Amazon’s fulfillment centers, in turn, host a range of internally designed robots that automate repetitive logistics tasks. Many of those robots rely on AI models to guide their work. 

Photo of Amazon CEO Andy Jassy (left) and German Chancellor Olaf Scholz: Amazon

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