Amazon invests billions in Germany to expand cloud services and boost jobs
The logo of Amazon Web Services (AWS)
Amazon is set to invest $10.75 billion amid booming demand for its products in Europe's biggest economy. This brings Amazon's planned investments in Germany to over $19 billion.
Most of the investment will be spent by 2026 to expand its computing unit, Amazon Web Service (AWS). This aligns with a broader trend of companies focusing on expanding their AI-related services.
German Chancellor Olaf Scholz welcomed the investment, which is said to create more than 4000 jobs this year. Germany is currently dealing with an economic downturn triggered by high energy costs and interest rates. The country is also facing significant economic threats owing to EU-China trade tensions. Major industries have voiced concerns over potential losses if tensions escalate. At this time, such an investment is a good breather for Germany.
Regarding Amazon's partnerships in Europe, Just Eat Takeaway, Europe's biggest food delivery firm, has struck a deal with Amazon over free delivery of food orders for Amazon Prime members in Germany, Austria and Spain. Amazon struck a similar agreement with Just Eat's US business - GrubHub.