Amazon has launched its new “sovereign cloud” service in Europe, aiming to stay competitive in a market where regulators are putting greater pressure on Big Tech.
The offering is designed for organisations that want cloud services where data is stored and managed within a specific jurisdiction, without being moved elsewhere.
The move comes as the European Union continues to push companies operating in the bloc to comply with stricter privacy and data rules.
These efforts have been driven by growing concerns in Europe over the dominance of US tech giants in cloud infrastructure, and fears about potential access to sensitive European data.
Why Europe is demanding sovereign cloud services
The term “sovereign cloud” broadly refers to cloud computing services where customer data is stored, processed, and handled within a specific country or legal region.
In Europe, demand for these services has increased as governments, regulators, and businesses focus more on data residency and control.
The EU has pushed for stronger compliance with its data and privacy regulations, especially as concerns rise about US-based tech companies dominating the cloud sector.
European policymakers have also highlighted the risk that foreign-controlled cloud systems could give outside authorities access to European citizens’ information.
AWS builds a separate cloud region in Germany
The Amazon Web Services European Sovereign Cloud is based in Brandenburg, Germany, and was first announced in 2023. Amazon says this system is physically and logically separate from other AWS cloud regions.
To support that structure, Amazon has created a new parent company for the sovereign cloud. It will be locally controlled within the EU and run by EU citizens, according to the company.
Stéphane Israël will lead the AWS European Sovereign Cloud.
Stefan Hoechbauer, vice president of AWS global sales for Germany and Europe Central, has been appointed as a managing director.
AWS also announced five new members of an advisory board for the sovereign cloud, three of whom are Amazon employees.
How AWS is addressing EU control and resilience
Amazon said the sovereign cloud has no critical dependencies on non-EU infrastructure. The company also said it can continue operating even in the event of a communications disruption with the rest of the world.
AWS said that under extreme circumstances, authorised AWS employees working on the AWS European Sovereign Cloud, who are EU residents, will have independent access to a replica of the source code needed to maintain AWS European Sovereign Cloud services.
In recent years, European regulators and politicians have raised concerns about reliance on US tech firms for critical digital infrastructure.
Even as the EU encourages regional alternatives, AWS, Microsoft, and Google still control a large share of the market.
Expansion plans come amid EU cloud scrutiny
The sovereign cloud launch comes as European regulators investigate cloud services from Amazon and Microsoft under the Digital Markets Act, which is designed to limit the power of major tech firms.
AWS, Microsoft, and Google account for around 70% of the cloud computing market in Europe, according to Synergy Research Group.
In 2024, Amazon said it would invest 7.8 billion euros ($9.1 billion) into the AWS European Sovereign Cloud in Germany through 2040.
Amazon said it would expand the AWS European Sovereign Cloud to Belgium, the Netherlands, and Portugal.
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