Today, Amazon announced its plan to invest an additional €18 billion in Spain to accelerate AI and data centers. In the year 2024, the US tech giant, Amazon, already committed €15.7 billion in investment in Spain to bolster data centers in the northeastern Aragon region, projecting that it would generate an average of 17,500 jobs yearly.
This additional €18 billion commitment was announced following a meeting between Prime Minister Pedro Sánchez and David Zapolsky, Amazon’s Chief Global Affairs and Legal Officer. Amazon’s aggregate investment in Spain now amounts to €33.7 billion, reinforcing the ample dominance of the company in Europe. Will these multi-billion-euro deals revamp Spain’s tech landscape?
Amazon – Spain Bet Ignites AI Infrastructure Race
Amazon’s initial footsteps in Spain involved launching the country’s official website and opening its first logistics center in San Fernando de Henares in the year 2011. Amazon made an investment of over €20 billion in Spain across cloud, AI infrastructure, retail operations, innovations, community development programs, and logistics networks since its arrival in 2011. Marking 15 years in Spain, Amazon has now announced an additional commitment that brings its total investment in the country to €33.7 billion to foster data center infrastructure, advanced AI, and cloud computing to serve enterprises across Europe.
Investing €18 billion, Amazon plans a data center in the Spanish region of Aragón, where it already runs cloud infrastructure. Amazon plans to build data centers in Teruel, Huesca, and Zaragoza; to support these operations, the company will expand its network with three distinct Availability Zones.
Amazon’s investments in Spain grew by thirteenfold in three years, increasing from an initial investment of €2.5 billion in 2021 to €33.7 billion in 2026. The surge in the investment scale reinforces that Amazon views Spain as the most viable space for fostering the AI infrastructure required to train Large Language models.
Economic and Social Impacts of Amazon-Spanish Deals
Beyond accelerating the AI ecosystem, Amazon is making substantial economic and social commitments in Spain by deploying significant capital. Amazon supported over 100 community development projects across Aragon since 2023, and this involved community partnerships and community funds supporting 48 hyperlocal projects. In Aragon, Amazon launched a robotic training program engaging over 7,400 students across 4 schools in Teruel, Zaragoza, and Huesca.
Establishing a footprint in Spain, Amazon delivered ample support to digitalise rural Aragon. In the year 2017, collaborating with vocational training and support and the Ministry of Education, Amazon committed to delivering AI training for half a million students in AI by 2027.
Amazon’s €33.7 billion commitment is expected to support the growth of local businesses and the regional economy of Spain, and create ample job opportunities, fostering the economic growth of the country. The total planned investments in Spain are expected to contribute 29,900 full-time, direct and indirect jobs annually. Induced jobs are created through broader economic activity, while indirect jobs are created by Amazon’s business partners. It is expected that the data center operations in Spain will create 6,700 openings.
AI Investment Rush Looms Over Widespread Lay-Offs
A large investment to bolster the data center comes with massive layoffs. Amazon is planning to cut approximately 16,000 headcount to free up €33.7 billion for its expansion operations in Spain. Shifting the focus from operating expenses to CapEx, Amazon is prioritising the data center ownership over the middle management workforce. The ongoing scenario signals Amazon’s priority for efficiency over bureaucracy.
