BERLIN: US tech giant Amazon on Tuesday announced plans to invest over €16 billion (US$18 billion) in Germany next year, including in data centres and other infrastructure underpinning the artificial intelligence (AI) revolution.
The news, unveiled at a business summit hosted by the government in Berlin, is a boost for Europe's struggling top economy as it hunts for new investments, particularly in high-tech fields.
"Germany is a hub of innovation and one of the most attractive investment opportunities in Europe," said David Zapolsky, Amazon's chief global affairs and legal officer, noting that the firm had already invested over €100 billion in Germany since 2010.
Economy minister Katherina Reiche said Amazon's investments would "strengthen Germany's position in international technology competition and create value and jobs in the process".
Of the €16 billion, nearly five billion will go towards expanding operations of the company's cloud computing division, Amazon Web Services, in the Frankfurt area, as demand grows for AI services.
Some of the investments would go into Amazon Leo, which aims to provide high-speed internet via a network of satellites.
Amazon's warehouses will be upgraded, including through the use of more robotics, and video service Amazon Prime plans to film a slate of new productions in Germany, the firm said.
The investment summit, wrapping up Tuesday, is bringing together more than 200 corporate leaders from Germany and abroad.
The government is seeking to attract more companies to expand their operations and help get the stagnating economy back on its feet, despite frequent complaints about onerous red tape, high energy costs and a lack of skilled labour.
Chancellor Friedrich Merz told the event his coalition had "embarked on the most ambitious reform and modernisation drive of the past decades. We are committed to seeing these reforms through."
He listed tax relief, cutting bureaucracy and strengthening financial markets as among the key aims.
Earlier, Reiche said in a radio interview that companies had so far pledged investments totalling more than €220 billion at the summit.
Merz opened the event late Monday, holding an on-stage discussion with Jensen Huang, CEO of AI chip giant Nvidia.
At the same time, Berlin announced a partnership with Nvidia aimed at accelerating the use of AI in industrial applications - an area where manufacturing giant Germany hopes that it can excel.