AWS European Sovereign Cloud launch: A $9.1 billion bet on data sovereignty
Amazon debuts the AWS European Sovereign Cloud in Germany with a $9.1 billion investment. A strategic move to meet EU data residency and privacy regulations.
It's built by Amazon, but controlled by Europe. AWS just launched a 'physically and logically separate' cloud to satisfy the EU's strictest data laws, marking a major shift in how Big Tech operates across borders.
The AWS European Sovereign Cloud launch and Its Infrastructure
According to Reuters, Amazon Web Services (AWS) officially debuted its European Sovereign Cloud in Brandenburg, Germany. Unlike standard regions, this setup is designed to be entirely independent of non-EU infrastructure. Amazon created a new parent company within the bloc, ensuring that EU citizens handle all operations and data management locally.
The scale of the commitment is massive. Amazon plans to invest 7.8 billion euros (approximately $9.1 billion) in the German site through 2040. The company also confirmed that expansion into Belgium, the Netherlands, and Portugal is already on the roadmap, targeting public sector and highly regulated industries that demand localized data residency.
Navigating the Digital Markets Act (DMA)
Despite AWS, Microsoft, and Google controlling 70% of the European cloud market, they face increasing scrutiny. European regulators are currently investigating cloud services under the Digital Markets Act (DMA). By creating a localized, sovereign-controlled entity, Amazon isn't just selling cloud space; they're selling compliance and trust to a skeptical European market.
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