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Amazon Launches European Sovereign Cloud to Strengthen Data Security and Compliance

Prime Highlight

  • Amazon has launched its European Sovereign Cloud in Germany, keeping sensitive data fully within the EU to comply with strict data protection regulations.
  • The platform operates independently from Amazon’s global cloud regions, ensuring physical and logical separation for enhanced security and resilience.

Key Facts

  • Amazon pledged €7.8 billion investment in Germany for the sovereign cloud through 2040 and plans expansion to Belgium, the Netherlands, and Portugal.
  • The sovereign cloud is locally controlled by EU citizens, with a dedicated parent company, management team, and advisory board for governance.

Background

Amazon has launched its European Sovereign Cloud, marking a major step to strengthen its position in Europe as data protection rules and regulatory scrutiny continue to tighten. Amazon Web Services (AWS) runs the new cloud service and keeps sensitive data fully within the European Union.

The AWS European Sovereign Cloud is based in Brandenburg, Germany, and operates as a separate system from Amazon’s other global cloud regions. Amazon said the platform is both physically and logically independent, ensuring that customer data is stored, processed, and managed entirely within the EU.

To meet European requirements, Amazon has set up a new parent company for the sovereign cloud. The entity will be locally controlled in the EU and run by EU citizens. Stéphane Israël will lead the sovereign cloud business, while Stefan Hoechbauer has been appointed managing director. AWS also named five members to a new advisory board to support governance and oversight.

Amazon said the sovereign cloud has no critical reliance on non-EU infrastructure. The system can continue operating even if communication links with the rest of the world are disrupted. In rare cases, authorised EU-based AWS staff will have independent access to key source code needed to maintain services.

The launch comes as European governments push for stronger control over digital infrastructure amid concerns about the dominance of U.S. technology firms. According to industry data, AWS, Microsoft, and Google currently control about 70% of Europe’s cloud market. At the same time, regulators are reviewing cloud services from Amazon and Microsoft under the EU’s Digital Markets Act.

Amazon has committed significant investment to support the initiative. In 2024, the company pledged to invest €7.8 billion in the European Sovereign Cloud in Germany through 2040. On Thursday, Amazon said it will expand its sovereign cloud to Belgium, the Netherlands and Portugal, showing its long-term commitment to Europe.