Amazon will invest more than €16 billion in Germany in 2027 for data centers and AI

US tech giant Amazon announced plans to invest over €16 billion in Germany next year, including in data centers and infrastructure supporting artificial intelligence. The investment, revealed at a business summit in Berlin, aims to bolster Germany's position in international technology competition and create jobs and economic value.

Amazon's chief global affairs and legal officer, David Zapolsky, highlighted the firm's extensive history of investment in Germany, with more than €100 billion invested since 2010. Economy minister Katherina Reiche stated that the investments would strengthen Germany's standing in the global tech arena and generate value and employment.

Approximately €5 billion of the total will be allocated to expanding Amazon Web Services' operations in Frankfurt, as demand for AI services surges. Amazon Leo, a project centered on high-speed internet delivery via satellite, will also receive funding. Additionally, Amazon's warehouses will be modernized, incorporating more robotics, while Amazon Prime will produce a series of new shows in Germany.

The investment summit concluded with over 200 corporate leaders from Germany and abroad attending, signaling the government's efforts to entice more companies to expand their operations and revitalize the stagnant economy, amidst concerns over bureaucratic hurdles, high energy costs, and a shortage of skilled labor. Chancellor Friedrich Merz emphasized the government's commitment to implementing ambitious reforms and modernization.

By the summit's end, companies had pledged investments surpassing €220 billion. Reiche mentioned a prior on-stage discussion with Jensen Huang, CEO of AI chip giant Nvidia, and announced a collaboration with Nvidia to promote AI utilization in industrial contexts.