Amazon’s (NASDAQ:AMZN) cloud computing arm, Amazon Web Services (AWS), is engaged in advanced discussions with Italy to inject billions of euros into expanding its data center business within the country. This move forms a key part of the tech giant’s strategy to enhance its cloud offerings across Europe, as disclosed by four individuals familiar with the matter.
The sources indicated that negotiations are ongoing regarding the size and location of the investment. One source mentioned that AWS is contemplating either expanding its existing facility in Milan or constructing a new one.
Although AWS and a representative from Italy’s cabinet office digital transition department chose not to offer comments, a spokesperson from Italy’s industry ministry was unavailable for immediate response.
In 2020, AWS launched its inaugural cloud region in Italy with plans to invest 2 billion euros ($2.2 billion) by 2029. Notable customers in the country include luxury carmaker Ferrari and insurer Assicurazioni Generali, according to its website.
In addition to its Italian endeavors, AWS recently announced a substantial 15.7 billion euro investment in data centers in Spain’s northeastern Aragon region, superseding its prior 10-year plan. However, sources suggest that while AWS’ investment in Italy will also be substantial, it may not match the scale of its plans for Spain. An official announcement is not anticipated in the near term.
AWS’ plans for Germany entail a 7.8 billion euro investment through 2040. Moreover, the company is constructing infrastructure to cater to telecom customers’ cloud service needs, a venture that garnered its first major customer, Telefonica Deutschland, earlier this month.
The heightened interest in cloud computing, fueled by artificial intelligence advancements, has prompted many large corporate clients to resume spending in this sector after a pause last year. Alphabet and Microsoft have also made significant investments in cloud infrastructure in Italy, further underscoring the industry’s importance and growth potential in the region.
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