Amazon.com Inc's (NASDAQ:AMZN) web services division plans to inject €15.7 billion (US$17.02 billion) into establishing facilities in Spain.
What Happened: Amazon Web Services will expand in Spain's northeastern Aragon region, reported Reuters.
The initiative supplants a prior commitment made in 2021, wherein Amazon had allocated €2.5 billion for Spain.
Amazon plans to power its Spanish data centers with renewable energy sources.
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Why It Matters: The Aragon government touts the move as "the largest technology investment in Spain and southern Europe."
Amazon's investment is expected to create approximately 17,500 jobs annually through 2033.
Spain's Digital Transformation Minister Jose Luis Escriva hailed the decision. He affirmed Spain's burgeoning role in technology and AI innovation across Europe.
Various cloud service providers, including Microsoft Corp's (NASDAQ:MSFT) Azure, are aggressively expanding their data center networks throughout Europe, often gravitating toward similar regions.
Price Action: Amazon stock has gained more than 59% in the last 12 months. Investors can gain exposure to the stock via Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) and Vanguard Consumer Discretionary ETF (NYSE:VCR)
AMZN shares are trading lower by 0.11% at $182.95 in premarket at the last check Wednesday.
Disclaimer: Benzinga produced this content with the help of AI tools. Editors reviewed it before publishing.