Oracle invests $3B to expand AI cloud infrastructure across Europe

Oracle will invest $3 billion over five years to expand its cloud and artificial intelligence infrastructure across Germany and the Netherlands, marking a significant expansion of the company’s European operations. The investment responds to growing demand for sovereign AI services and data governance compliance in the region, with $2 billion allocated to Germany’s Frankfurt region and $1 billion to the Netherlands’ Amsterdam region.

The big picture: Oracle’s European expansion reflects the increasing demand for localized AI infrastructure that meets strict EU data governance requirements while supporting both public and private sector digital transformation initiatives.

Key details: The investment will enhance Oracle’s Cloud Infrastructure (OCI) capabilities across multiple sectors and use cases.

• In the Netherlands, the $1 billion investment will focus on financial services, logistics, life sciences, and energy sectors while supporting startups and public institutions.
• Germany’s $2 billion investment targets manufacturing, automotive, renewable energy, scientific research, and healthcare industries.
• Both expansions will provide access to Oracle’s sovereign cloud services, including OCI Dedicated Region, Oracle Cloud@Customer, and Oracle EU Sovereign Cloud.

Why this matters: The investment positions Oracle to capitalize on Europe’s regulatory environment that favors data sovereignty and local cloud infrastructure over global alternatives.

• European organizations increasingly require AI and cloud services that comply with EU data governance standards and meet strict latency requirements.
• The expansion supports government digital transformation priorities in both countries, particularly for highly regulated industries.

What they’re saying: Government and Oracle leaders emphasized the strategic importance of the investment for digital innovation.

• “Organizations in the Netherlands are rapidly embracing AI and new technologies,” said Wilfred Scholman, Oracle’s Netherlands country leader.
• Karsten Wildberger, German Federal Minister for digital transformation and government modernization, noted that “Oracle’s strategic investment underscores that Germany is an attractive location for digital innovations and investments.”
• “With our plans to invest U.S. $2 billion in AI infrastructure and cloud computing over the next five years, we are helping organizations across Germany accelerate their AI and cloud journeys,” added Thorsten Herrmann, Oracle’s Germany country leader.

Broader context: The European expansion comes as Oracle secures major AI infrastructure contracts globally, including a confirmed $30 billion annual deal with OpenAI for the Stargate data center projects.

• Oracle will lease approximately 4.5 GW of capacity to OpenAI, with potential expansions in Texas and other U.S. states including Michigan, Wisconsin, New Mexico, and Wyoming.
• The OpenAI contract isn’t expected to impact Oracle’s financial results until 2028, indicating the long-term nature of these infrastructure investments.