Amazon announced plans to invest E10 billion ($10.75 billion) in Germany, emphasising the country's growing importance in cloud computing and retail. The majority of this investment, totalling E8.8 billion, will be allocated by 2026 to expand Amazon Web Services (AWS), particularly focusing on enhancing cloud infrastructure to support AI technologies across Europe.

German Chancellor Olaf Scholz hailed the investment, highlighting its potential to create over 4,000 jobs this year. That move comes amidst Germany's economic challenges, including an energy crisis and bureaucratic hurdles that have hindered investment.

Amazon's latest commitment brings its total planned investments in Germany to E17.8 billion, underscoring its long-term strategic focus on the country. Earlier reports indicated AWS's consideration of multi-billion investments to expand data centres in Italy, further illustrating Amazon's broader ambitions in Europe's digital infrastructure sector.

The investment signals Amazon's confidence in Germany's business environment and its strategic position in Europe, aiming to bolster AWS's AI and cloud services capabilities to meet increasing regional demand. That is expected to boost employment and enhance Amazon's technological footprint in Europe's largest economy.