Amazon Pledges More Than $17 Billion to Expand German Operations

Amazon.com said it would invest more than 16 billion euros ($17.94 billion) in artificial-intelligence infrastructure, high-speed satellite internet, logistics and Prime Video content in Germany next year, the latest big-ticket commitment from a U.S. technology giant to expand overseas.

The group said its pledge included 4.8 billion euros to shore up its cloud and data-center infrastructure in the country to meet growing demand for AI services. It also plans to bolster connectivity through Amazon Leo—a satellite network in low Earth orbit to provide high-speed internet—expand its logistics footprint, and work on new content for its Prime Video platform.

The pledge, outlined during an investment summit in Germany, shows that Amazon is keen to strengthen its resources in Europe’s largest economy and cash in on demand for services from AI to connectivity, e-commerce and entertainment. David Zapolsky, Amazon’s chief global affairs and legal officer, said Germany was one of the most attractive investment opportunities in Europe.

Amazon’s injection of capital is a win for Chancellor Friedrich Merz and his efforts to portray Germany as an appealing investment destination and innovation hub. Merz on Monday welcomed Nvidia Chief Executive Jensen Huang, who came to Berlin for the company’s signature GTC conference. The pair sat down to discuss AI.

“We are fully committed to be one of the most advanced places in the world, not just in the European Union, but in the world to work with AI, to integrate AI into our industry,” Merz said.

Tech giants have pledged billions of dollars to beef up data centers, cloud services and AI infrastructure in Europe since OpenAI’s release of ChatGPT to the public in late 2022 ushered in a spending frenzy.

Microsoft said in September last year that it would pour $30 billion into AI infrastructure and existing operations in the U.K. through 2028. Earlier this year, Amazon said it would invest 33.7 billion euros through 2035 to bolster its cloud and data-center infrastructure in Spain.

The company, which has poured more than 100 billion euros into Germany since 2010, said it was opening a second research lab for robotics and AI in Berlin, doubling its research presence in the German capital. It also said the modernization of fulfillment centers in Bad Hersfeld, Dortmund and Werne would be completed next year, with work in Koblenz, Pforzheim and Rheinberg continuing through 2028.

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