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Logistics

Amazon to invest €10bn in logistics and R&D across Germany

Hazel KingBy Hazel KingJune 24, 20243 Mins Read
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Amazon logo at office building, Munich Germany
Credit: dvoevnore - stock.adobe.com

Amazon will drive innovation and support the expansion of its logistics network and cloud infrastructure across Germany with a €10bn (US$10.7bn) investment plan.

The company will also create 4,000 news jobs this year at three new fulfillment centers, in Horn-Bad Meinberg (North Rhine-Westphalia), Erfurt (Thuringia) and Großenkneten, taking the total number permanent employees in Germany to 40,000 by the end of 2024.

Rocco Bräuniger, Amazon Germany country manager, said, “Amazon came to Germany over 25 years ago, and we continue to invest in the country. With our teams continually focused on innovation, we’re helping German customers transform the way they work, live, connect and thrive.

“Our teams work hand-in-hand with state-of-the-art technologies to deliver for small businesses and customers, while AWS [Amazon Web Services] enables organizations of all sizes in Germany to grow their businesses and innovate using the cloud. And with that comes a positive impact for the country – and especially the communities where we operate – with a broad range of investments and jobs ranging from research and development to logistics and customer service.”

Cloud infrastructure investment

As part of its investment plans, Amazon is spending €7.8bn (US$8.3bn) on developing its AWS European Sovereign Cloud, reflecting its long-term commitment to meeting Europe’s digital sovereignty requirements. The AWS European Sovereign Cloud is a new, independent cloud for Europe, and its first AWS Region will launch in the State of Brandenburg by the end of 2025.

AWS plans to make an €8.8bn (US$9.4bn) investment by 2026, to continue to build, maintain and operate its cloud infrastructure for the AWS Europe (Frankfurt) Region, which was launched in Frankfurt Rhein-Main in 2014. This investment will help meet growing customer demand for AWS technologies in Germany, including AI used in logistics.

Stefan Hoechbauer, managing director for Germany and Europe at AWS, said, “Germany is at the heart of innovation across Europe. AWS is more committed than ever to helping German customers lead and build new technologies and services using the wide variety of capabilities in the AWS Cloud, including generative AI. To address the growing demand for our services, we’re investing heavily in Germany’s digital infrastructure. This also includes our commitment to support digital skills and talent development programs across Germany and to partner with local communities on joint initiatives with a lasting impact.”

Long-term commitment

According to Amazon, it has invested more than €77bn (US82.6bn) in Germany since 2010, with four R&D sites, in Aachen, Berlin, Dresden and Tübingen, working on products and services for AWS, Amazon Music, Fire TV, Alexa and fulfillment technologies. The research teams at the Development Centre in Berlin will benefit from the extension of labs to develop and enhance AI and robotics technologies.

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