Amazon’s (AMZN) Amazon Web Services (AWS), among the world’s largest cloud providers, launched its first cloud service in Germany, called “European Sovereign Cloud,” aiming to strengthen its leading position in the region amid tighter regulatory scrutiny of U.S. tech giants. The step aims to address user concerns about data security from mainly U.S.-based providers by providing an independent alternative.
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The term “sovereign cloud” refers to cloud computing services that store, process, and keep data within a specific jurisdiction.
How AWS’s European Sovereign Cloud Differs
AWS stated that its European Sovereign Cloud data centers are physically and legally isolated from its U.S. infrastructure. Amazon has formed a new parent company for its sovereign cloud, designed to be locally controlled within the European Union and operated by EU citizens. This setup enables the cloud to keep operating even if the EU loses internet connectivity or the U.S. bans software exports, AWS Germany CTO Michael Hanisch told Reuters.
In 2024, Amazon committed €7.8 billion ($9.1 billion) to Germany’s AWS European Sovereign Cloud through 2040. The service will expand to Belgium, the Netherlands, and Portugal.
The EU Fears American Big Tech’s Dominance
Europeans increasingly seek alternatives to U.S.-dominated tech due to concerns over legal data access granted to authorities. The U.S. Cloud Act requires American companies to provide stored data to U.S. authorities, even if held abroad, fueling European demand for local control.
Meanwhile, rivals Microsoft (MSFT) and Alphabet’s (GOOGL) Google Cloud are competing for customers with strict data security needs. Microsoft stores European customer data solely in EU-based data centers on request, while Google announced €5.5 billion ($6.41 billion) in German data center investments last year. Despite EU efforts to boost regional providers, AWS, Microsoft, and Google control 70% of Europe’s cloud market, according to Synergy Research Group.
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