Amazon’s cloud computing unit, Amazon Web Services (AWS), is in talks with Italy to invest billions of euros in expanding its data center operations in the country. The move is part of Amazon’s broader strategy to boost its cloud services across Europe.
The ongoing talks are focused on determining the size and location of the investment, with AWS considering expanding its existing facilities in Milan or building a new site. However, details such as the exact investment amount and specific location have not yet been finalized. AWS and the Italian cabinet’s digital transformation department did not immediately respond to requests for comment, and a spokesperson for the Italian Ministry of Industry did not immediately respond to a request for comment.
AWS established its first cloud region in Italy in 2020, with plans to invest €2 billion by 2029. Its customers in Italy include prestigious brands such as luxury carmaker Ferrari and insurance company Assicurazioni Generali.
This potential investment in Italy follows AWS’s recent announcement of a €15.7 billion investment in Spain’s Aragon region, up from a previously planned €2.5 billion. While the Italian investment is expected to be significant, it may not match the scale of the Spanish project and an announcement is not expected in the near future.
In a long-term strategy, AWS has also revealed plans to invest €7.8 billion in Germany through 2040. Furthermore, AWS is developing infrastructure to provide cloud services to telecom customers, an area that requires significant resources. This month, Telefonica Deutschland became the first telecom customer to announce it was moving 1 million customers to the AWS cloud.
Amid growing interest in artificial intelligence and a resurgence in corporate cloud spending, AWS is aiming to meet growing demand in the $270 billion cloud infrastructure market. AWS has also committed to storing data on servers located in the European Union to comply with data privacy regulations, especially for heavily regulated government and industry customers.
Competitors such as Alphabet have also made significant inroads into the Italian cloud market, with a €1 billion investment to set up two cloud regions for Intesa Sanpaolo, Italy’s largest bank. Microsoft (NASDAQ:MSFT) has similarly announced the launch of its first cloud region in Italy, part of a $1.5 billion investment initiative announced in 2020.
The cloud computing market continues to be a key growth area for technology companies, with Amazon's AWS at the forefront of this expansion, driving the growth of cloud infrastructure in Europe.
Source: Investing
