Online retail and cloud computing giant Amazon plans to invest a further €10 billion ($10.7 billion) in Germany, the majority of which will go towards its cloud internet services, the company announced on Wednesday.
Amazon will spend €8.8 billion on expanding its cloud subsidiary Amazon Web Services (AWS) in the region around Frankfurt by 2026. The money will fund construction work, data centre operations as well as equipment and software.
A smaller part of the investment will go toward expanding Amazon's logistics operations, robotics as well as two new large corporate office buildings in the country.
Amazon, which is already building an office tower in Berlin, on Wednesday announced plans for a second major office complex for its German operations in Munich.
The German Amazon workforce is set to grow to 40,000 permanent employees by the end of the year, up from around 36,000 in 2023. The US-based company, which was founded in 1994, now employs more than 1.5 million people worldwide, the majority of whom are in the United States.
In May, the company announced the establishment of a new cloud for Europe called "AWS European Sovereign Cloud" with expenditure of €7.8 billion, the first region of which is to be located in the eastern German state of Brandenburg.
Accordingly, the company put the total amount of investment planned in Germany at the time at €17.8 billion. Amazon claims to have invested more than €77 billion in the country since 2010.
Chancellor Olaf Scholz described the announcement as a strong signal for Germany, demonstrating that Europe's largest economy remains a very attractive business location.
"As the German government, we are working on precisely this - the competitiveness of the location and the investment conditions here," Scholz said.