Amazon has earmarked €4.8 billion to expand cloud and AI capacity in Frankfurt in 2027, committing new German infrastructure spending after its cloud business posted 37% quarterly sales growth.
Amazon Web Services (AWS) generated $42.2 billion in sales in the quarter ended June 30, 2026, up 37% from a year earlier. For the year through June 30, Amazon posted a $7.6 billion free cash flow outflow, reversing an $18.2 billion inflow in the comparable previous period.
Amazon said the €4.8 billion will expand the AWS Europe (Frankfurt) Region to meet customer demand for cloud and artificial intelligence services. It announced the allocation Oct. 20 at the Invest in Germany Summit. The amount is part of Amazon’s plan to invest more than €16 billion in Germany in 2027.
Beyond cloud infrastructure, its 2027 program spans logistics, Prime Video productions and Amazon Leo satellite internet. Amazon intends to establish its second Berlin research lab, focused on AI and robotics. It gave no separate spending amounts for those activities.
The Frankfurt allocation follows Amazon’s earlier Germany investment plan, announced in 2024. That plan included an €8.8 billion commitment to AWS infrastructure in Frankfurt through 2026. Amazon says it invested €15 billion in Germany in 2025 and more than €100 billion since 2010; the longer tally includes employee compensation.
Germany’s government has identified data centers and industrial AI as sectors where it wants to attract private capital. Chancellor Friedrich Merz put investor pledges discussed at the summit at about €230 billion and cited Amazon’s plan as an example. The government gave no company-by-company breakdown or spending timetable for that total.
Amazon said logistics projects disclosed before the summit are linked to more than 3,000 new jobs. It expects upgrades at Bad Hersfeld, Dortmund and Werne to finish in 2027, while work at Koblenz, Pforzheim and Rheinberg is scheduled to continue through 2028.
