Amazon in Talks with Italy for Multi-Billion Euro Investment in Cloud Expansion
Amazon's AWS is in talks with Italy for a multibillion-euro investment to grow its data centre business. The investment is intended to strengthen Amazon's cloud offerings in Europe. The magnitude and location of the investment are still to be determined.
This move is part of Amazon's goal to expand its cloud services throughout Europe. According to sources acquainted with the situation, discussions are ongoing, and the magnitude and location of the investment are still being determined. AWS is exploring either expanding its existing Milan plant or building a new facility.
Both AWS and a spokeswoman for Italy's cabinet's digital transition department declined to comment on the issue. The industry ministry of Italy was not immediately available for comment.
In 2020, AWS launched its first cloud region in Italy, with plans to invest €2 billion ($2.2 billion) by 2029. Notably, luxury carmaker Ferrari and insurer Assicurazioni Generali are among the prominent customers of AWS in Italy.
AWS has announced a €15.7 billion investment in data centres in northeastern Aragon, Spain, which will replace a prior 10-year plan. However, the investment in Italy is projected to be in the billions, although it may not be on the same magnitude as the plans for Spain. An official announcement on the investment is not likely in the near future.
AWS intends to invest €7.8 billion in Germany by 2040, thereby strengthening its position in the European market.
AWS is also concentrating on constructing infrastructure to meet telecom customers' cloud service requirements, which demand significant resources. Just this month, Telefonica Deutschland, a leading telecommunications provider, announced its plans to migrate one million customers to AWS cloud.
To ensure data privacy for government and customers in highly regulated industries, AWS announced last year its plans to store data on servers located within the European Union.
Industry experts and executives have noticed a comeback in cloud computing investment among major corporate customers, spurred by a growing interest in artificial intelligence. This has resulted in a resurgence in the $270 billion cloud infrastructure market. Alphabet, Google's parent firm, has also made big investments in Italy, providing cloud services to the country's largest bank, Intesa Sanpaolo.
Microsoft, a significant competitor in the cloud computing industry, has announced a $1.5 billion investment in Italy, which includes the establishment of the country's first cloud region.
Amazon's AWS is in discussions with Italy for a multi-billion euro investment in expanding its data centre business.
The investment aims to boost Amazon's cloud offerings in Europe.
The size and location of the investment are still being determined.
Source: REUTERS