Amazon Web Services (AWS) is in advanced discussions with Italian authorities to inject billions of euros into expanding its data center operations within the country. 

This move is part of the tech giant’s strategic initiative to bolster its cloud offerings across Europe, reported Reuters, citing trusted sources.

The ongoing negotiations center on determining the scale and location of the proposed investment. One source revealed that AWS is contemplating either expanding its existing facility in Milan or constructing a new data center altogether. 

However, both AWS and representatives from Italy’s cabinet’s office, the digital transition department, declined to provide official comments on the matter. 

AWS made its foray into the Italian market by launching its maiden cloud region in 2020. This initiative was part of a broader plan to infuse 2 billion euros ($2.2 billion) into the country’s digital infrastructure by 2029. 

According to the company’s website, notable Italian entities such as luxury carmaker Ferrari and insurer Assicurazioni Generali are among the prominent clients availing themselves of AWS services.

In neighboring Spain, AWS recently unveiled plans to invest a staggering 15.7 billion euros in data center facilities within the northeastern Aragon region. This significant commitment supersedes its prior 10-year blueprint announced in 2021, which earmarked 2.5 billion euros for the Spanish market. 

Although AWS’ potential investment in Italy is anticipated to be substantial, sources suggest it may not rival the scale of its ambitious plans for Spain. However, an official announcement regarding the Italian investment is not expected imminently.

The scope of AWS’ endeavors extends beyond Italy and Spain. In Germany, the tech titan has outlined plans to channel 7.8 billion euros into its operations until 2040. Additionally, AWS is spearheading initiatives to provide cloud services to telecom clients, necessitating substantial infrastructure development to meet the demands of this sector. 

Telefonica Deutschland recently became AWS’ inaugural telecom client, announcing intentions to transition 1 million customers to AWS cloud services earlier this month.

Moreover, AWS has been proactive in addressing data privacy concerns. Last year, the company announced its intention to store data exclusively on servers located within the European Union. 

The resurgence of interest in cloud computing, particularly fueled by the growing demand for artificial intelligence applications, has catalyzed a renewed wave of investment in the sector. 

Analysts and industry insiders observe a resurgence in spending among major corporate clients, signaling a rebound in growth within the $270 billion cloud infrastructure market.

Amazon’s competitors, including Alphabet and Microsoft, are also intensifying their efforts to capture market share in Europe’s burgeoning cloud landscape. 

Alphabet secured a landmark deal in 2020 to provide cloud services to Italy’s largest bank, Intesa Sanpaolo, investing 1 billion euros to establish two cloud regions crucial for Intesa’s operations. 

Meanwhile, Microsoft embarked on its Italian cloud venture last year, pledging a $1.5 billion investment as part of its broader European expansion strategy announced in 2020.