Amazon.com Inc.’s AWS computing unit is in talks with Italy to invest billions of euros in expanding its data center business in the country as part of the tech giant’s efforts to bolster its cloud offerings in Europe, four people familiar with the matter said.
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London — Amazon Amazon Web Services (AWS), the cloud computing division of the US e-commerce giant, has announced plans to invest £8 billion ($10.45 billion) over the next five years to build and operate data centres in the UK as it ramps up its cloud computing efforts in the country.
The investment, announced early Wednesday London time, comes as cloud computing players talk up the benefits of generative artificial intelligence (AI) and as companies look to integrate the technology into their businesses.
“We’ve seen a real appetite for cloud computing and AI technology from UK businesses, and we know the UK has a very ambitious digital agenda,” Tanuja Randheri, managing director of AWS Europe, Middle East and Africa, told CNBC.
“This will help our customers actually benefit from cloud computing, because you need data centers to actually be able to deliver cloud computing to our customers.”
Generative AI is “probably the most transformative technology we’ve seen, perhaps since the advent of the cloud and the internet,” Randeri said, and companies are already testing this emerging technology.
“We've also seen companies look at this in terms of revenue growth, employee productivity, which is really critical, you know, but also being able to compete globally.”
AWS, along with other cloud companies, has invested heavily in infrastructure, such as data centers and Nvidia Chips, to train and run AI models. Cloud computing companies then sell AI services to businesses.
AWS competes with Microsoft and Google The company’s investments in the UK continue to focus on expansion in Europe. AWS said this year it plans to invest €8.8 billion in existing cloud infrastructure in Germany.
But the investment also comes at a time when UK regulators are scrutinising competition in the cloud computing market, with AWS and Microsoft under scrutiny. The Competition and Markets Authority is currently looking into the UK cloud computing market.
Randeri said Amazon Web Services was “working very constructively” with the Competition and Markets Authority, but authorities needed to balance regulation with innovation.
“We have been working closely with governments and regulators around the world, and we believe that it is important to have regulation, but that regulation must continue to support innovation,” Randere told CNBC.
