Amazon Unveils 'Sovereign' Cloud in Europe, Plans Expansion

• AWS created a new parent company for the sovereign cloud that will be locally controlled in the EU and run by EU residents, with no critical dependencies on non-EU infrastructure
• Amazon plans to invest 7.8 billion euros ($9.1 billion) in the AWS European Sovereign Cloud in Germany through 2040
• U.S. cloud providers AWS, Microsoft, and Google currently control 70% of the European cloud computing market, prompting regulatory scrutiny under the EU's Digital Markets Act

Summary

Amazon Launches European Sovereign Cloud Amid Regulatory Pressures

Amazon Web Services (AWS) officially launched its European Sovereign Cloud on Thursday, establishing a "physically and logically separate" infrastructure based in Brandenburg, Germany. The sovereign cloud ensures data remains within EU jurisdiction and complies with stringent European data privacy regulations.

Key Developments:

• Amazon created a new parent company for the sovereign cloud, locally controlled and staffed exclusively by EU citizens
• Stéphane Israël will lead the initiative, with Stefan Hoechbauer appointed as managing director
• The infrastructure has "no critical dependencies on non-EU infrastructure" and can operate independently during global communications disruptions
• Under extreme circumstances, only authorized AWS employees who are EU residents will have access to source code replicas

Investment and Expansion:

• Amazon committed €7.8 billion ($9.1 billion) to the AWS European Sovereign Cloud in Germany through 2040
• Expansion plans announced for Belgium, the Netherlands, and Portugal

Market Context:

U.S. tech giants dominate European cloud computing, with AWS, Microsoft, and Google controlling 70% of the regional market, according to Synergy Research Group. This concentration has raised concerns among EU politicians about American firms' control over critical technology infrastructure.

Regulatory Environment:

European regulators are currently examining Amazon and Microsoft under the Digital Markets Act (DMA), legislation designed to limit Big Tech's power. The sovereign cloud launch appears strategically timed to address EU compliance concerns while maintaining AWS's market leadership position.

The move signals Amazon's commitment to navigating Europe's increasingly complex regulatory landscape while defending its cloud infrastructure market share.