Amazon’s computing unit AWS on Thursday, November 7, announced its intention to invest 1.2 billion euros ($1.3 billion) in Italy over the next five years as part of efforts to expand its data center business in the country.
Currently, Amazon, which has been an e-commerce giant for many years and has over time become one of the largest players in the global technology sector, is taking actions aimed at scaling its cloud offering in Europe. As part of this effort, AWS launched its first cloud region in Italy in 2020. This project provides for the prospect of investing 2 billion euros by 2029.
In an official statement, the company noted that the announced financial injections from AWS will support up to 5,500 jobs throughout the data center supply chain. It is expected that the relevant prospects will materialize by 2029.
Jobs will range from construction, engineering, facility maintenance, telecommunications, and activities within the broader local economy.
It is worth noting that in May, the media released information that AWS is in talks to expand its business in Italy. At that time, the intention of the technology giant to invest billions of euros in the mentioned country was also noted.
It is known that among AWS customers in Italy are luxury car manufacturer Ferrari and insurance company Assicurazioni Generali. Local media reported on Thursday that the technology giant intends to expand the operations of its data center in Milan.
It is worth mentioning that in May AWS announced an investment of 15.7 billion euros in data centers in Spain’s northeastern region of Aragon. Also, at that time, the company stated plans to make financial injections of 7.8 billion euros to Germany by 2040.
It is worth noting that recently there has been a steady increase in demand for data centers. To a large extent, the corresponding tendency is associated with the active development of the artificial intelligence industry. Massive computing power is needed for the functioning of machine intelligence systems, the number of which is rapidly increasing. The high level of demand for data centers will likely continue in the foreseeable future. This assumption is based on the fact that the artificial intelligence industry continues to be on the trajectory of active development and intensive scaling. There is an increase in the number of players in the AI market. Against the background of the mentioned circumstances, the prospects for AWS are positive. It is worth noting that this Amazon business demonstrates good financial results. In the third quarter of the current year, AWS generated revenue of $27.5 billion. This indicator showed an increase of 19% compared to the result for a similar period in 2023. It is worth noting that in the third quarter of last year, AWS revenue rose by 12% compared to the result for the same quarter of 2022. This dynamic indicates an acceleration in the growth of the indicator, which is likely to continue. AWS services correspond to what can be described as dominant technology tendencies.
