Oracle has revealed its intention to invest $3 billion in Germany and the Netherlands as part of its ongoing expansion of cloud infrastructure across Europe.

Over the next five years, the company will allocate $2 billion towards expanding its Oracle Cloud Infrastructure (OCI) presence in Germany, with a specific focus on boosting AI infrastructure capabilities in the Oracle Cloud Frankfurt region.

In a statement detailing the initiative, Thorsten Herrmann, senior vice president and country head for Germany at Oracle, explained that the investment is designed to assist businesses throughout the country in “accelerating their AI and cloud transitions.”

He also noted that the initiative aligns with the national government’s goal of positioning Germany as a leading center for AI innovation and investment within Europe.

This investment will enable Oracle to better serve growing demand in Germany for sovereign cloud and AI solutions within the public sector and key industries such as manufacturing, automotive, renewable energy, scientific research, and healthcare.

As part of the effort, Oracle confirmed that startups and investors in Germany will gain access to infrastructure for AI model training and inference, along with multi-cloud capabilities.

Federal Minister for Digital Transformation and Government Modernization Karsten Wildberger expressed support for the investment, stating: "We welcome increased investments from both domestic and international sources."

“This move strengthens our digital backbone and allows both companies and government agencies to take advantage of cutting-edge AI and cloud technologies.”

At the same time, Oracle plans to invest $1 billion in the Netherlands over the same period to keep up with rising demand for AI and cloud services. This includes a major expansion of AI infrastructure capacity in the Oracle Cloud Amsterdam region.

The investment will primarily benefit key sectors in the Netherlands, including financial services, logistics, life sciences, and energy.

Oracle fully committed to European growth

These new investment announcements reflect Oracle's broader strategy to expand across Europe, which it sees as a high-potential market.

Earlier this year, the company announced a separate $5 billion plan to expand its OCI footprint in the UK.

Last year, Oracle also committed $1 billion to Spain, focusing heavily on supporting the financial services industry there.

Larry Ellison, Oracle’s CTO and chairman, has frequently emphasized the importance of Europe in recent years, highlighting the continent as a critical growth area driven by increasing demand for sovereign cloud services.

During a speech last year, Ellison predicted that each country would eventually establish its own sovereign cloud, noting that Oracle was in discussions with multiple governments at the time.

Across Europe, enterprise interest in sovereign cloud solutions has grown significantly, largely due to strict data protection regulations.

According to a senior analyst at Forrester speaking to ITPro last year, customers now view sovereign cloud options as the minimum standard, prompting providers to intensify efforts in this space.

Alongside Oracle, major competitors like Google, Microsoft, and AWS have been rapidly launching their own sovereign cloud offerings.

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