AWS in Talks with Italy for Multi-Billion Euro Data Centre Expansion

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Amazon Web Services (AWS) is in advanced talks with Italy to invest billions of euros in expanding its data centres.
Amazon Web Services (AWS) is in advanced talks with Italy to invest billions of euros in expanding its data centres.

Amazon’s computing unit, Amazon Web Services (AWS), is in advanced discussions with Italy to invest billions of euros in expanding its data center business in the country. 

According to sources familiar with the matter, this initiative is part of AWS’s broader strategy to enhance its cloud offerings in Europe.

Potential Expansion Sites:

The discussions are focused on the size and location of the potential investment. One source mentioned that AWS is considering either expanding its existing site in Milan or constructing a new facility altogether. However, no definitive decision has been made yet.

AWS and a spokesperson for Italy’s digital transition department have declined to comment on the ongoing discussions. Additionally, a representative from Italy’s industry ministry was not immediately available for comment.

AWS Current and Planned Investments in Europe:

AWS launched its first cloud region in Italy in 2020, committing to a 2 billion euro investment by 2029. The company counts prominent customers such as luxury carmaker Ferrari and insurer Assicurazioni Generali.

Recently, AWS announced a 15.7 billion euro investment in data centers in Spain’s northeastern Aragon region, significantly increasing from a previous 10-year plan that earmarked 2.5 billion euros.

Future Investment in Italy:

One source indicated that AWS’s investment in Italy would be substantial, although it may not match the scale of its Spanish plans. An announcement regarding this investment is not expected imminently.

In Germany, AWS plans to invest 7.8 billion euros through 2040. AWS is also enhancing its infrastructure to provide robust cloud services to telecom customers, a sector requiring extensive resources. 

For instance, earlier this month, AWS secured its first telecom customer when Telefonica Deutschland decided to move 1 million customers to the AWS cloud.

Data Privacy and Cloud Services:

AWS has committed to storing data on servers within the European Union to ensure data privacy for the government and customers in highly regulated industries.

Analysts and executives report a resurgence in corporate spending on cloud computing, driven by growing interest in artificial intelligence. This resurgence is fueling growth in the $270 billion cloud infrastructure market.

Investments by Competitors:

Alphabet has invested 1 billion euros in Italy to establish two cloud regions that support Italy’s largest bank, Intesa Sanpaolo. 

Similarly, Microsoft announced its first cloud region in Italy last year as part of a $1.5 billion investment plan initiated in 2020.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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