Amazon Web Services (AWS) has unveiled its AWS European Sovereign Cloud, a significant initiative to address Europe’s demand for stringent data control. This new cloud, launching by late 2025, involves a €7.8 billion investment through 2040 and a new German-based corporate structure. This entity, led by EU citizens and staffed by EU-resident AWS employees, will ensure all data and operations remain within the European Union.
This development provides European organizations a robust path to navigate complex data privacy laws like GDPR and Germany’s Federal Data Protection Act. The AWS European Sovereign Cloud will operate independently from existing AWS global regions, with infrastructure entirely within the EU.
Kathrin Renz, an AWS Vice President and EU citizen, will lead the new German parent company. AWS, in its announcement, underscored that operational authority will be strictly EU-centric, with “only AWS employees, residing in the EU,” managing all daily activities, including data center access and customer support.
AWS’s move intensifies competition with Microsoft, which recently enhanced its European data sovereignty measures, and reflects a broader adaptation by U.S. cloud giants to Europe’s evolving regulatory landscape. Renz highlighted that the AWS European Sovereign Cloud is designed “to address European digital sovereignty requirements while maintaining the services portfolio, security, reliability, and performance that customers expect from AWS.”
An EU-citizen advisory board and a dedicated European security operations center will oversee the new cloud, according to AWS. This initiative also comes against a backdrop of AWS’s own past regulatory scrutiny in Europe; Amazon faced a significant fine in Luxembourg in 2021 and AWS settled an EU antitrust probe in 2022.
Governance and Operational Overhaul in Europe
AWS is establishing a distinct European organization for its sovereign cloud. The new German parent company and its three subsidiaries will be managed by EU citizens, including Renz and, as Amazon indicated to TechCrunch, EU-based “government security and privacy official[s]”. An independent advisory board, legally bound to act in the sovereign cloud’s best interest, will feature four EU citizens, with at least one unaffiliated with Amazon.
This structure means the new AWS entities will be entirely subject to European law. AWS asserts the design ensures operational continuity even if global connectivity is disrupted, with EU-resident staff having independent access to essential source code.
To bolster autonomy, the AWS European Sovereign Cloud will utilize dedicated networking via AWS Direct Connect, its own Amazon Route 53 DNS service with European Top Level Domains, and a European Certificate Authority for SSL/TLS certificates.
A dedicated European Security Operations Center (SOC), led by an EU citizen, will also be established. Furthermore, AWS is introducing a Sovereign Requirements Framework (SRF) for customer assurance. Kathrin Renz, as managing director, will be legally bound to act in the sovereign cloud’s interest, overseeing governance and compliance, IT Europa also noted.
Competitive Moves and Regulatory Pressures
Microsoft has also been active in Europe. In April, it announced five digital commitments, including a “European Digital Resilience Commitment” to legally challenge government orders to halt its European cloud operations.
Microsoft’s Vice Chair and President, Brad Smith, affirmed the company’s respect for European laws and values, stating, “We recognize that our business is critically dependent on sustaining the trust of customers, countries, and governments across Europe. We respect European values, comply with European laws, and actively defend Europe’s cybersecurity.”
Microsoft is also expanding its European datacenter capacity and earlier completed its EU Data Boundary, ensuring core cloud service data for European customers is stored and processed within the EU/EFTA. This was a response to regulations like the Schrems II ruling and significant GDPR fines, such as Meta’s €1.3 billion penalty.
Microsoft’s strategy includes sovereign cloud ventures like Bleu in France and its January entry into the European cloud provider group CISPE, a move AWS opposed. This underscores the competitive friction. Google also faced challenges, with a failed CISPE bid and a subsequent complaint against Microsoft.
The Broader European Push for Digital Autonomy
The initiatives from AWS and Microsoft align with a strong European drive for digital sovereignty. In March, the EuroStack Initiative urged the European Commission to bolster local digital infrastructure. Their letter declared that Europe “cannot continue down the path of outsourcing its digital infrastructure to non-EU players.”
The coalition advocated for a “Buy European” policy and a Sovereign Infrastructure Fund. Analyst firm The Futurum Group describea the AWS European Sovereign Cloud as a potential “game changer” and a “geopolitical declaration,” noting that such initiatives could lead to a “more fragmented but flexible global cloud infrastructure landscape.”
The U.S. CLOUD Act remains a significant concern for European organizations, influencing these strategic shifts, as highlighted by IT Europa. AWS frames its €7.8 billion Brandenburg investment as part of a larger, long-term commitment to Europe, which includes, according to its press release, €250 billion invested since 2010 and R&D centers in Ireland and Germany.
