AWS is investing to strengthen its presence in Europe

Amazon Web Services (AWS), the 
cloud computing arm of the e-commerce giant, aims to consolidate its position in Italy. To this end, the group is reportedly prepared to invest several billion euros.

Cloud giants are expanding into Italy

Discussions with the Italian Ministry of Industry have reportedly already begun, according to exclusive information obtained by Reuters . The size and location of the investment are currently the focus of the talks, with AWS considering expanding its existing site in Milan. The construction of new facilities is also a possibility.

The company launched its first cloud region in Italy in 2020 as part of a €2 billion investment plan until 2029. It already has a solid customer base including, among others, luxury car manufacturer Ferrari and insurer Assicurazioni Generali.

That same year, Google struck a landmark deal to provide cloud services to Italy’s largest bank, Intesa Sanpaolo. The Redmond-based company invested nearly €1 billion in the country to establish the two sites on which the bank relies. Also in 2020, Microsoft unveiled a major $1.5 billion investment plan in Italy. Its first cloud region in the country was launched last year.

A flurry of investments in Europe

Italy isn’t the only European country coveted by cloud giants. After pausing their cloud spending in 2023, large companies are once again injecting significant sums into the sector. Meanwhile, the boom in generative artificial intelligence (AI) is driving cloud providers to build new data centers, as the technology requires substantial computing power.

Europe’s situation is also unique. Authorities are calling for the establishment of a sovereign cloud , prioritizing local data storage. Keen to avoid losing market share, companies like Microsoft, Google, and Amazon are investing heavily in Europe to meet this demand.

In 2022, AWS announced a massive €15.7 billion investment in data centers in Spain. According to Reuters , the amount spent in Italy is not expected to surpass this. For its part, Microsoft revealed this year that new data centers would be built in Germany and then in Spain . At the Choose France summit, held a few weeks ago, both the Redmond-based company and AWS pledged to invest in France , with AI as a key focus.