US tech giant Amazon announced Tuesday that it plans to invest over €16 billion ($18 billion) in Germany next year, including in data centres and other infrastructure underpinning the artificial intelligence revolution.

The announcement, made at a government-hosted business summit in Berlin, is a boost for Europe’s largest economy as it seeks new investment, particularly in high-tech fields. “Germany is a hub of innovation and one of the most attractive investment opportunities in Europe,” said David Zapolsky, Amazon’s chief global affairs and legal officer, noting the company has already invested over €100 billion in Germany since 2010.

Economy Minister Katherina Reiche said Amazon’s investment would “strengthen Germany’s position in international technology competition and create value and jobs in the process.”

Nearly €5 billion of the total will go towards expanding Amazon Web Services, the company’s cloud computing division, in the Frankfurt area amid growing demand for AI services. Some funds will also go to Amazon Leo, which aims to provide high-speed internet via a satellite network. Amazon’s warehouses will be upgraded, including through greater use of robotics, and its Prime video service plans to film a slate of new productions in Germany.

The investment summit, which wraps up Tuesday, brings together more than 200 corporate leaders from Germany and abroad. The government is seeking to attract companies to expand operations and revive the stagnating economy, despite frequent complaints about red tape, high energy costs and a shortage of skilled labour.

Chancellor Friedrich Merz told the event that his coalition had “embarked on the most ambitious reform and modernisation drive of the past decades. We are committed to seeing these reforms through.” He listed tax relief, cutting bureaucracy and strengthening financial markets as key aims.

Earlier, Reiche said in a radio interview that companies had so far pledged investments totalling more than €220 billion at the summit. Merz opened the event late Monday with an on-stage discussion with Jensen Huang, CEO of AI chip giant Nvidia.

At the same time, Berlin announced a partnership with Nvidia aimed at accelerating the use of AI in industrial applications—an area where manufacturing powerhouse Germany hopes to excel.