Oracle Backs EU AI Growth with $3B Major Cloud Expansion Push

CIOTech Outlook Team | Tuesday, 15 July 2025, 11:33 IST

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  • Oracle to invest $3B in cloud/AI in Germany and Netherlands
  • Supports EU data rules, boosts HPC and localised AI services
  • Part of Oracle's $10B global infra expansion for 2025

 

Oracle is making a stronger commitment to AI and cloud infrastructure in Europe by investing $3 billion to expand in the two countries, Germany and the Netherlands. At a time when the demand for AI compute and secure, localised cloud services is growing across Europe, the timing is right.

The investment will include $2 billion will be invested in Germany and $1 billion in the Netherlands over the next five years. The investment will be mainly building new cloud regions, enhancing HPC (high-performance computing) systems, and providing AI ready cloud solutions that are fit for purpose for enterprise and public sector users.

As Europe tightens data sovereignty regulations and emphasises digital independence, Oracle is positioning itself as a trusted partner for institutions that require local data hosting, regulatory compliance, and cutting-edge performance. This is particularly crucial for industries like healthcare, finance, and manufacturing, where latency, security, and data governance are critical.

Also Read: AWS Opens Innovation Hub to Boost Cloud and AI in Asia Pacific

“Organizations across Europe are quickly adopting AI to boost productivity, encourage innovation, and support growth,” said Richard Smith, Executive Vice President of Oracle Cloud Infrastructure. “Our investment will provide customers with the secure infrastructure they need, right where their data is located.”

Oracle’s initiative closely matches the EU’s digital sovereignty goals. These goals promote building local capabilities to reduce dependence on foreign infrastructure. By providing localized cloud services, Oracle aims to address compliance concerns and assist European organizations in using AI while maintaining data integrity.

This announcement serves as a component of Oracle's global cloud expansion strategy which aims to double its worldwide cloud  capacity by 2025 under a $10 billion infrastructure framework. Oracle faces direct competition with Microsoft Azure and  Google Cloud along with AWS as all tech giants push European expansion for enterprise solutions and regulatory compliance.

The establishment of these data centres represents a strategic investment beyond construction because Oracle wants to establish long-term European  AI infrastructure and provide organisations with reliable digital foundations for controlled innovation growth.