Amazon commits €16 billion to Germany in 2027, expanding AI infrastructure and cloud computing

Amazon Unveils €16 Billion Germany Investment Package

Amazon announced plans to invest more than €16 billion ($18 billion) in Germany in 2027, marking one of the largest single-year commitments by a U.S. technology company to Europe's largest economy1

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. The announcement came at the Invest in Germany Summit in Berlin, a two-day event hosted by Chancellor Friedrich Merz aimed at attracting foreign investment to the country1

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. David Zapolsky, Amazon's chief global affairs and legal officer, described Germany as "a hub of innovation and one of the most attractive investment opportunities in Europe"2

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. This latest commitment adds to the more than €100 billion Amazon says it has invested in Germany since 2010, where the company employs over 40,000 people1

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AWS Cloud Region Expansion Dominates Investment

The largest portion of the Amazon investment—€4.8 billion—will go toward expanding Amazon Web Services' data center infrastructure around Frankfurt1

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. The AWS cloud region in Frankfurt has been operating since 2014 and serves as a critical hub for cloud computing and AI infrastructure across Europe1

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. This expansion responds to surging demand for AI services and growing competition among technology firms racing to build out cloud and data-center infrastructure5

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. Morgan Stanley analyst Brian Nowak raised his AWS revenue growth forecasts to 47% for 2027 and 42% for 2028, highlighting the strength of Amazon's cloud business and potential AWS margin outperformance3

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. The Frankfurt expansion follows a separate €10 billion investment plan announced in June 2024, most of which was earmarked for cloud infrastructure1

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Berlin Robotics and AI Research Lab Doubles Footprint

Amazon is opening a second robotics and AI research lab in Berlin, doubling its research presence in the German capital1

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. The new facility will hire applied scientists and robotics hardware, software, and systems engineers, though Amazon has not disclosed the cost of the expansion2

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. This move positions Berlin as a key innovation hub for Amazon's robotics development. The timing aligns with Amazon's broader European expansion strategy, following a €33.7 billion commitment to Spain earlier this year, with spending on cloud and data center capacity running until 20352

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Logistics Infrastructure Creates 3,000 Jobs

Amazon's 2027 investment includes significant upgrades to its logistics infrastructure across Germany. Six warehouses, including facilities in Bad Hersfeld and Dortmund, will be upgraded, with work continuing into 20281

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. The modernization of fulfillment centers in Bad Hersfeld, Dortmund, and Werne will be completed in 2027, while work in Koblenz, Pforzheim, and Rheinberg will extend through 20284

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. A new fulfillment center in Zweibrücken is due to open this year, while another is under construction in Könnern1

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. These previously announced logistics projects account for more than 3,000 new jobs2

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. The expansion builds on Amazon's June announcement of a more than €10 billion investment to expand and modernize its European fulfillment network, including the deployment of next-generation robotics3

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Satellite Internet and Prime Video Expansion

The investment extends beyond cloud computing and logistics. Amazon Leo, the company's satellite internet network in low Earth orbit, has secured 24 rocket launches with European provider Arianespace1

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. The satellite network aims to provide internet access in areas existing networks do not reach, including parts of Germany2

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. Meanwhile, Prime Video has more than 15 German productions planned through 2027, including the film "Der erste letzte Tag" ("The First Last Day"), based on a novel by Sebastian Fitzek2

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. Rocco Bräuniger, Amazon Germany country manager, stated: "We have already created over 40,000 permanent jobs, built more than 100 sites, and invested more than €100 billion in Germany—and we are far from done"2

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. Katherina Reiche, Germany's federal minister for economic affairs and energy, called the investment "a clear vote of confidence in Germany as a location for the future"2

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