Amazon.com Inc. (NASDAQ:AMZN) has unveiled plans to invest €15.7 billion ($17 billion) in Spain to bolster its cloud business in Europe, marking the largest investment the tech giant has announced on the continent to date. The initiative adds to a series of recent investment pledges worldwide by Amazon and its competitors in the cloud computing sector.
Amazon Web Services (AWS) announced on Wednesday that it will execute the investment over the period until 2033, significantly surpassing its previous commitment of €2.5 billion made in 2021 for the country’s expansion.
This move by Amazon underscores its substantial financial commitment to expanding AWS infrastructure globally. Earlier this year, the company revealed plans for significant long-term projects in Germany, Mexico, the US, Saudi Arabia, and Singapore. The intense competition in the cloud computing market, particularly from rivals like Microsoft Corp., has prompted Amazon to bolster its global presence.
In addition to catering to corporate clients with cloud services, Amazon’s data centers play a crucial role in facilitating the development of next-generation artificial intelligence (AI) tools. These tools necessitate increased computing power and extended training times, highlighting the significance of Amazon’s investment in data infrastructure.
The tech giant’s commitment to bolstering its data center capabilities extends beyond Spain. Amazon has also announced plans to invest €7.8 billion in German data centers through 2040. Additionally, French President Emmanuel Macron’s office disclosed earlier this month that Amazon has committed to spending €1.2 billion on infrastructure and computing in France.
Amazon’s substantial investments in data infrastructure reflect its strategic focus on expanding AWS capabilities globally, positioning itself to capitalize on the growing demand for cloud services and emerging AI technologies.
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