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Amazon’s AWS Boosts Italian Cloud with $2 Billion Euro Investment

Analyst Team trader
Updated 28 May 2024

Amazon's cloud computing division, Amazon Web Services (AWS), is set to strengthen its footprint in Italy with a substantial investment aimed at expanding its cloud infrastructure and services in the region. AWS, which embarked on its Italian journey in 2020, is planning to channel efforts worth 2 billion euros ($2.2 billion) into the country by 2029. This reinforces their commitment to increasing their presence and improving services for local and international clients on Italian soil.

Understanding the scope of the investment, AWS may extend operations by enlarging existing data centers or by plotting new facility constructions to enhance cloud service deliveries throughout Italy. AWS's current clientele boasts influential names including the esteemed automaker Ferrari and the prominent insurance company Assicurazioni Generali, reflecting the high caliber of services and trust that AWS has cultivated within the Italian market.


This move aligns with Amazon's broader strategy for augmenting its operations across Europe. The tech giant has recently announced investments in Germany and Spain, demonstrating their intention to solidify their lead in cloud services across the continent. In a nod to their global aspirations, Amazon is also propelling into the Asian market with an $8.87 billion investment in Singapore.

In financial terms, AWS has showcased robust growth, evidenced by a 17% year-over-year increase in revenues, totalling $25 billion in the first quarter. The enthusiasm around Amazon's expansion is mirrored in the reception by analysts and firms such as Loop Capital Markets who reiterate their Buy rating on Amazon stock and projects a price target of $225, implying a promising 24.5% upside potential.

Reflecting a wider industry optimism, Wall Street maintains a Strong Buy consensus rating on Amazon stock, with an average price target of $220.60. This suggests an estimated further upside of 22.05%, highlighting the confidence traders and analysts alike have in the trajectory of the company's growth and the vitality of AWS as a key driver of profits.

This investment in Italy not only stands as a testament to AWS's relentless pursuit of global cloud dominance but also serves as an indicator of Amazon's strategic focus on infrastructure as a cornerstone for future growth. With their continued investment and innovation, AWS is reinforcing its platform as a bedrock for digital solutions, catering to a diverse range of needs from governments to large corporations and startups alike.

This decision is poised to add a significant chapter to Italy's digital transformation narrative and potentially imprint a long-lasting impact on the cloud computing landscape in Europe.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.