Amazon's Billion-Euro Bet on Italy: Expanding AWS Data Centers
Milan, Italy – Amazon is gearing up to significantly expand its footprint in Italy, targeting the burgeoning data economy with a multi-billion euro investment in AWS (Amazon Web Services) data centers. This strategic move is set to boost Italy's cloud infrastructure, aligning with Amazon's broader European ambitions.
Amazon Fresh recently announced the establishment of a new center in Peschiera Borromeo, just outside Milan. This development is a testament to Amazon's commitment to enhancing its logistics capabilities in Italy. However, the real game-changer lies in AWS's planned investment, poised to transform the country's digital landscape.
AWS has been operational in Italy since 2012, but the real leap forward occurred in 2020. Responding to the growing demand for cloud services, AWS launched its first Italian cloud region with a 2 billion euro investment plan set to run through 2029. This initiative includes three data centers in the Milan area, designed to support each other with isolated yet interconnected infrastructure, ensuring resilience against emergencies like climate crises. These data centers, or "availability zones," are equipped with their own power, cooling, and security capabilities, connected by redundant, low-latency networks. AWS also operates smaller Edge Locations in Milan, Palermo, and Rome, aimed at delivering low-latency content.
AWS's expansion in Italy is part of a larger European strategy. Recently, AWS announced a €15.7 billion investment in Spain's Aragon region and a €7.8 billion investment in Germany, slated through 2040. These investments reflect AWS's commitment to enhancing its cloud offerings across Europe.
In Italy, AWS faces competition from tech giants like Google and Microsoft. Google has invested 1 billion euros in its Italian cloud region, supporting clients like Intesa Sanpaolo. Microsoft, on the other hand, launched its Italian cloud region in 2020 with a 1.5 billion euro investment plan over five years. The presence of these major players highlights the increasing demand for robust cloud infrastructure in Italy. AWS's planned expansion is expected to generate significant economic impact, with the company initially projecting an economic contribution of 3.7 billion euros and supporting an average of 1,155 jobs annually.
As data privacy regulations tighten globally, localizing servers within the EU is not just a technological necessity but a regulatory mandate. AWS's investment in Italy aligns with these requirements, ensuring compliance while meeting customer needs.
Amazon's strategic investment in AWS data centers marks a significant milestone in Italy's digital transformation. By bolstering cloud infrastructure, Amazon is set to play a pivotal role in driving the country's data economy forward, fostering innovation, and creating job opportunities.