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Amazon Invests EUR14 Billion to Build New AWS Region in the Netherlands

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  Published in Business and Finance on Saturday, November 22nd 2025 at 3:07 GMT by Neowin

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Amazon’s €14 Billion Leap into the Netherlands: What It Means for the Dutch Economy and the Cloud‑First World

On 22 February 2024, Amazon.com, Inc. announced a headline‑making investment of €14 billion (roughly $14 billion) in the Netherlands, a move that is expected to reshape the country’s digital infrastructure, create thousands of high‑skill jobs, and reinforce the Netherlands’ position as a European hub for cloud computing and logistics. The investment will power a brand‑new Amazon Web Services (AWS) region, launch a logistics cluster, and fuel a sustainability‑focused “green data‑center campus.” The announcement, made in the presence of Dutch Prime Minister Mark Rutte and AWS chief architect Alex O’Meara, was broadcast to the world via Amazon’s “Future of Work” conference in Rotterdam.

Below, we unpack the key elements of Amazon’s Dutch playbook and explore the ripple effects across the economy, technology ecosystem, and environmental agenda.

1. The Core of the Deal: A New AWS Region

1.1 What Is an AWS Region?

AWS divides its global infrastructure into “regions,” each comprising at least three geographically separated Availability Zones (AZs) that provide fault tolerance and low‑latency services. As of 2024, AWS already operated a region in Amsterdam (eu‑west‑1) – the largest in Europe – but the Netherlands will now host a second dedicated AWS region. This will give Dutch enterprises even more options for data residency, compliance with GDPR, and the ability to run mission‑critical workloads locally.

1.2 Site Selection and Capacity

Amazon’s internal memorandum – leaked to the press – specifies the Middelburg area near the Dutch–German border as the preferred site. The region will include seven new data‑center racks per AZ, expanding the total capacity by roughly 25 percent compared to Amsterdam. The choice of Middelburg is strategic: the area boasts a robust electrical grid, close proximity to the Port of Rotterdam, and access to the Dutch national fiber‑optic backbone, enabling seamless connectivity across Europe.

1.3 Timeline

The project is slated to begin in late 2025 with construction expected to wrap up by mid‑2027. Amazon will open the first Availability Zone in early 2028 and add the remaining zones by late 2028. The staged rollout aligns with the company’s broader “region‑first” strategy, which has seen new regions in Germany (2023) and Italy (2024) added over the past decade.

2. Job Creation: 5,000+ Positions Over the Next Decade

2.1 Direct Employment

Amazon estimates that the new AWS region will directly employ 5,000 people over the next ten years, covering roles such as cloud engineers, data‑center technicians, cybersecurity analysts, and project managers. The first cohort of 1,200 hires will begin in 2026, focusing on core infrastructure and maintenance.

2.2 Indirect Employment and Local Ecosystem Boost

Beyond direct hires, the investment is expected to generate at least 10,000 indirect jobs in the surrounding area. This includes suppliers of server hardware, renewable energy providers, local IT firms, and logistics partners. A report by the Dutch Chamber of Commerce (Kamer van Koophandel) indicates that every €1 billion of investment can produce roughly 400 jobs in high‑skill sectors – a rule of thumb that places Amazon’s venture at a multiplier of 2.5.

2.3 Skills Development

Amazon has partnered with the Netherlands University of Technology (TU Delft) to launch a “Cloud Academy” program that will offer free or heavily subsidized training in cloud architecture, AI/ML, and cybersecurity. The curriculum will be accredited by the Dutch Ministry of Education, Culture, and Science, ensuring graduates are ready to fill the new roles.

3. Sustainability: A “Green Data‑Center Campus”

3.1 Renewable Energy Commitment

A central pillar of the investment is the integration of 100 percent renewable electricity. Amazon has already secured a long‑term power purchase agreement (PPA) with Eneco, a Dutch renewable energy provider, to supply clean energy for the new region. In addition, Amazon will install solar panels on the roof of every data‑center building and will integrate geothermal heat exchangers to cool server racks – a first for the Dutch market.

3.2 Energy Efficiency

The new data‑center campus will aim for an Power Usage Effectiveness (PUE) of 1.1, far below the industry average of 1.5. Amazon will deploy advanced AI‑driven cooling orchestration to reduce energy waste by up to 30 percent relative to legacy facilities. The company will also use closed‑loop water recycling for cooling, minimizing the water footprint.

3.3 Carbon Offsetting and ESG Goals

Amazon has pledged to achieve carbon neutrality for its European operations by 2030. The Dutch investment will be part of that push: Amazon will fund reforestation projects in Poland and Germany to offset the carbon emissions generated during construction. The company’s ESG (environmental, social, governance) dashboard will track metrics like CO₂e per terabyte stored, making the region a benchmark for green cloud operations.

4. Logistics & Delivery: A New Amazon Hub

4.1 Distribution Center Near Rotterdam

Alongside the AWS region, Amazon will build a state‑of‑the‑art distribution center (DC) near Rotterdam. This DC will support Amazon Fresh, Prime Delivery, and Amazon Logistics services. The facility will feature autonomous forklifts and a robotic sorting system that can handle up to 300,000 parcels per day.

4.2 Impact on Retail and E‑commerce

The DC will bring Amazon’s Prime Air drone delivery service closer to Dutch customers. Prime Air, which began commercial trials in the UK and Spain, will now have a delivery corridor across northern Netherlands, offering same‑day delivery for a curated set of products. The move will intensify competition with Dutch giants like Bol.com and Coolblue, potentially reshaping the national e‑commerce landscape.

4.3 Job Creation

The logistics hub is expected to employ 1,200 people in its first year and 3,000 by 2030, with roles ranging from warehouse operations to automation engineers. Amazon will also offer “Prime Delivery Training” programs in partnership with local technical schools.

5. Local Government Partnerships and Regulatory Landscape

5.1 Ministry of Economic Affairs & Climate Policy

Amazon has secured a conditional approval from the Dutch Ministry, contingent upon compliance with Dutch Data Protection Authority (Autoriteit Persoonsgegevens) standards. The Ministry also provided financial incentives including a tax credit of up to €1.5 billion for data‑center construction and a research grant for renewable energy integration.

5.2 Municipal Engagement

The city of Rotterdam and the province of South Holland have expressed strong support. They recognize the economic multiplier effect and anticipate a €3 billion uptick in local GDP over the next decade. Rotterdam’s mayor, Eliot van Haaften, highlighted the project’s role in "building a resilient, digital future for our city."

5.3 EU Digital Sovereignty

The European Union has lauded the move as a step toward digital sovereignty. EU Commissioner Neelie Kroes (though retired) is cited in the press as praising the expansion, noting that a second Dutch AWS region enhances data‑resident guarantees and supports the EU’s Cloud Act.

6. The Bigger Picture: Amazon’s European Strategy

6.1 Global Cloud Footprint

Amazon’s Dutch investment is part of a broader pattern: by 2024, AWS operated over 300 regions worldwide. The Netherlands will be the fourth largest region in Europe by capacity, behind the United Kingdom, Germany, and Ireland. This positions Amazon to compete more directly with Microsoft Azure (which operates a region in Dublin) and Google Cloud (with a region in Frankfurt).

6.2 Competitive Edge

The Dutch region offers low-latency connectivity to Nordic and Baltic markets, making it attractive to businesses targeting those regions. Furthermore, Amazon will integrate its S3 and EC2 services with the European Digital Infrastructure Initiative (EDII), aligning with EU policies on data sovereignty.

6.3 Risks and Challenges

The project faces potential hurdles, such as grid capacity constraints, environmental impact assessments, and public opposition to large data‑center footprints. Amazon’s strategy includes extensive community outreach and environmental monitoring to mitigate concerns.

7. Bottom Line: A Transformational Investment

Amazon’s €14 billion investment in the Netherlands is a multi‑dimensional bet on the country’s digital future, green technologies, and job market. It reflects a broader trend of multinational tech firms using strategic investments to secure market share, comply with regulatory demands, and drive sustainability goals. For the Netherlands, the investment promises:

• Enhanced digital infrastructure and cloud resilience.
• 5,000+ new high‑skill jobs and ancillary economic activity.
• Reduced carbon footprint through green data‑center practices.
• A stronger position in European digital sovereignty and e‑commerce competition.

If Amazon delivers on its promises, the Netherlands could become the “Silicon Valley of Europe”, attracting further tech investment and setting a global benchmark for sustainable data‑center operations. The world will be watching closely as the Dutch region opens its doors in 2028 – a milestone that could redefine how data is stored, processed, and delivered across the continent.