Amazon pumps any other €10B into Germany

In another bold step to strengthen its grip in Europe, Amazon launched a €10 billion investment plan for Germany, with the goal of driving innovation and creating thousands of jobs across the country. This huge financial commitment demonstrates Amazon’s commitment to improving its logistics network, cloud infrastructure, and research and development (R&D) skills in its most important European region.

Amazon’s investment will result in the creation of three new fulfilment centres by 2024. The sites in Horn-Bad Meinberg, Erfurt, and Großenkneten will create 4,000 new employment, adding to Germany’s current workforce of over 40,000 permanent employees. These employment will cover a wide range of responsibilities and skill levels, with chances in over 100 cities and municipalities.

“Amazon came to Germany over 25 years ago, and we continue to invest in the country. Our teams work hand-in-hand with state-of-the-art technologies to deliver for small businesses and customers, while AWS enables organizations of all sizes in Germany to grow their businesses and innovate using the cloud,” Amazon Germany’s Country Manager,  Rocco Bräuniger said, highlighting the company’s long-term commitment to Germany.

Enhancing cloud infrastructure with AWS

A significant amount of the investment, €7.8 billion, would go to Amazon Web Services (AWS) to expand its European Sovereign Cloud, which is a new independent cloud infrastructure for Europe. The first AWS region for this cloud will be established in Brandenburg by the end of 2025, meeting Europe’s growing demand for cloud technology while guaranteeing digital sovereignty.

Furthermore, AWS intends to invest €8.8 billion in its Frankfurt-based cloud infrastructure by 2026, sustaining and extending the AWS Europe (Frankfurt) Region. This investment will help to meet the growing demand for AWS technologies, including artificial intelligence (AI), and is estimated to contribute €15.4 billion to Germany’s GDP while supporting an average of 15,200 full-time jobs in the local supply chain.

R&D initiatives

Reflecting the company’s commitment to innovation, Amazon also has research and development hubs in Germany. Since 2010, the company has invested more than €77 billion in Germany, thereby making an estimated economic contribution of over €50 billion. This is on top of the company’s big investments in AI and robotics at its Berlin Development Centre, where it will open larger labs and work on ways to improve Amazon technologies.

R&D teams in these cities work on projects related to AWS, Amazon Music, Fire TV, Alexa and fulfillment technologies. These investments not only power Amazon’s expansion but also contribute to the economies and innovative environments of local sites in Germany.

Amazon’s approach to deploying capital also reflects a broader corporate initiative around environmental responsibility and social well-being. In Germany, they were focused initially on digital skills and talent development programmes in partnership with local communities and supporting use of AWS technologies for local small businesses. Amazon’s sustainability practices demonstrate its commitment to minimizing impact on the environment while still pushing for economic growth.

Stefan Hoechbauer, Managing Director for Germany and Europe at AWS, emphasized Amazon’s role in fostering innovation: “Germany is at the heart of innovation across Europe. To address the growing demand for our services, we’re investing heavily in Germany’s digital infrastructure. This also includes our commitment to support digital skills and talent development programmes across Germany and to partner with local communities on joint initiatives with a lasting impact.”

A broader European perspective

Amazon’s investment in Germany is part of a broader strategy to enhance its presence and capabilities across Europe. The company’s focus on logistics, cloud infrastructure, and R&D is evident in similar initiatives in other European countries. For example, Amazon’s recent announcement that it is investing €15.7 billion in Spain to support 17,500 jobs a year shows how the company wants to drive economic growth and technology innovation across Europe.

In a nutshell, through its strategic investments, Amazon is laying the course for Europe to continue leading innovation on a global scale. Amazon is a future-facing employer ensuring that Europe is ready for the challenges of tomorrow by harnessing cutting- edge technology and creating thousands of jobs.

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