Amazon Plans €16 Billion Investment in Germany, Focusing on AI and Infrastructure

Amazon has announced plans to invest more than 16 billion euros (about 18 billion dollars) in Germany next year. This investment will focus on data centers and infrastructure to support artificial intelligence (AI) development.

The announcement was made during a business summit in Berlin, which aims to attract new investments to Germany, especially in high-tech industries. David Zapolsky, Amazon’s chief global affairs and legal officer, highlighted Germany as a key hub for innovation and investment in Europe.

Of the total investment, nearly 5 billion euros will be used to expand Amazon Web Services, the company’s cloud computing division, particularly in the Frankfurt area, where demand for AI services is increasing. Additionally, some funds will support Amazon Leo, a project aimed at providing high-speed internet through satellites.

Amazon also plans to upgrade its warehouses with more robotics and to produce new content for its video service, Amazon Prime, in Germany. This investment comes as the German government seeks to revive its economy, which has been facing challenges such as high energy costs and a shortage of skilled workers.

Chancellor Friedrich Merz emphasized the government’s commitment to reforming and modernizing the economy. He mentioned goals like reducing taxes and cutting bureaucratic hurdles to attract more companies. The summit has already seen pledges of over 220 billion euros in investments from various companies.

In a related development, Berlin announced a partnership with Nvidia, a major AI chip manufacturer, to enhance the use of AI in industrial applications, an area where Germany aims to excel.