The new service, known as the AWS European Sovereign Cloud, is designed to ensure that data generated within the European Union is stored, processed, and governed entirely inside the bloc. The initiative responds to growing concerns among European policymakers about reliance on U.S.-based cloud providers and the potential exposure of sensitive data to foreign jurisdictions.
Based in Brandenburg, Germany, the sovereign cloud was first announced in 2023 and is structured to operate independently from Amazon’s other global cloud regions. According to Amazon, the infrastructure is both physically and logically separate, with no critical dependencies on non-EU systems. To reinforce local control, the company has established a new parent entity for the service that will be governed within the EU and run exclusively by EU citizens.
Stéphane Israël has been appointed to lead the AWS European Sovereign Cloud, while Stefan Hoechbauer, AWS vice president for Germany and Europe Central, will serve as managing director. Amazon also announced the formation of an advisory board for the initiative, comprising five members, three of whom are Amazon employees.
AWS said the sovereign cloud is built to continue operating even in the event of a global communications disruption. Under exceptional circumstances, authorised EU-based AWS staff would have independent access to a replica of the source code required to maintain services within the sovereign cloud environment.
The launch comes as European regulators intensify scrutiny of U.S. technology firms that dominate critical digital infrastructure. Despite efforts by the EU to encourage the growth of regional cloud providers, Amazon, Microsoft and Google together control about 70% of the European cloud computing market, according to Synergy Research Group.
At the same time, cloud services offered by Amazon and Microsoft are under investigation by European regulators under the Digital Markets Act, legislation designed to limit the market power of large technology platforms.
Amazon has pledged long-term investment in the initiative, announcing in 2024 plans to spend 7.8 billion euros in Germany on the sovereign cloud through 2040. On Thursday, the company said it would further expand the service to Belgium, the Netherlands and Portugal, signalling its intent to deepen its footprint across the European Union despite the evolving regulatory landscape.