Amazon (AMZN) shares are drawing attention following a Reuters report that Amazon Web Services (AWS), the company’s cloud computing division, is in talks to invest billions of euros in Italy. This investment aims to enhance its data center operations in the country as part of its ongoing expansion across Europe.
Sources close to the discussions indicated that the exact size and location of the investment are still under negotiation. However, one source mentioned that AWS plans to either expand its existing facilities or establish new ones in Milan.
AWS, which counts Ferrari (RACE) and Assicurazioni Generali among its Italian clients, launched its first cloud region in Italy in 2020. This was part of a broader strategy to invest €2 billion ($2.17 billion) in Italy by 2029. At the time, AWS stated that this investment would provide the necessary infrastructure for Italian companies to utilize advanced technologies such as analytics, artificial intelligence (AI), databases, and the Internet of Things (IoT).
In other parts of Europe, AWS has recently committed to a €15.7 billion ($17.06 billion) investment to expand its data centers in Spain and has pledged €7.8 billion ($8.48 billion) for cloud infrastructure in Germany.
While the anticipated investment in Italy is expected to be substantial, it may not reach the scale of the Spanish project, according to the report. Over the past year, AWS has intensified its efforts across Europe, securing resource-intensive clients in the telecom sector, including a recent deal with Germany’s Telefonica Deutschland (TELDY).
From a technical perspective, Amazon shares have been on a steady upward trajectory since early January last year. This uptrend was confirmed in March when the 50-week moving average (MA) crossed above the 200-week MA, forming a bullish golden cross signal.
Looking ahead, investors should monitor the $188 level closely, as it has been a significant resistance point since mid-2021. A breakout above this level, supported by strong trading volume, could indicate continued upward momentum. Conversely, failure to break this resistance may result in a retest of support around $170, based on a trendline that dates back to the January 2023 swing low.
Amazon shares closed last week at $180.75.
