Amazon’s AWS, its computing unit is in talks with Italy for investment of billions of euros. Amazon Italy plan for expansion of its data center business in the country as part of the tech giant’s effort to boost its cloud offer in Europe. This was as per four people familiar with the matter said. Discussions between Amazon AWS and spokesperson for the cabinet’s office over the size and the location of the investment are ongoing.
Also as per sources, Amazon Web Service is considering expanding its current site in Milan or building a new one.
Amazon AWS investment in Italy
AWS launched its first cloud region in Italy in 2020 as part of a plan to invest 2 billion euros ($2.2 billion) by 2029.
As per its website, it counts luxury carmaker Ferrari and insurer Assicurazioni Generali among its customers in the country.
AWS has recently unveiled a 15.7 billion euros investment in data centers in Spain’s northeastern Aragon region, replacing a previous 10-year plan announced in 2021, when the company earmarked 2.5 billion euros for the country.
Amazon AWS and a spokesperson for the cabinet’s office digital transition department declined to comment on the plans for investment. A spokesperson for Italy’s industry ministry was not immediately available to comment.
AWS cloud expansion
According to one of the sources, Amazon AWS’ investment in Italy would be in the billions but it might not reach the scale of its plans for Spain. An announcement is not imminent.
In Germany, AWS plans to invest 7.8 billion euros through 2040.
AWS is also building infrastructure to provide cloud services to telecom customers, which require vast resources.
It snagged its first customer earlier this month when Telefonica Deutschland announced plans to move 1 million customers to AWS cloud.
AWS data privacy
AWS last year announced plans to store data on servers located in the European Union to protect data privacy for government and customers in highly regulated industries.
Big corporate investment in cloud
Analysts and executives say many big corporate customers have started spending again on cloud computing after pausing last year, as interest in artificial intelligence drives a rebound of growth in the $270 billion cloud infrastructure market.
Alphabet, which struck a landmark deal in 2020 to supply cloud services to Italy’s biggest bank Intesa Sanpaolo, has invested 1 billion euros in Italy to set up the two cloud regions Intesa relies upon.
Microsoft a year ago said it was launching its first cloud region in Italy as part of a $1.5 billion investment plan it had announced in 2020.
Effect of Amazon investment on stock
A breakout in Amazon shares above crucial resistance around $188 would likely see the stock’s upside momentum continue, while a failure to do so could lead to a retest of support around 170. Amazon shares closed last week at $180.75.
