AWS, Amazon’s cloud computing infrastructure business, is making progress with its plans for a European “sovereign cloud” that aims to address data residency concerns. The company has confirmed that the first AWS sovereign cloud region will be located in Brandenburg, Germany, and is expected to be operational by the end of 2025. To support this initiative, AWS plans to invest €7.8 billion ($8.5 billion) in the facility over the next four years.
The decision to establish a sovereign cloud region in Germany aligns with AWS’s goal of providing localized data storage and processing capabilities in the European region. While AWS has been offering these services for some time, public sector bodies and organizations in highly-regulated industries have been hesitant to migrate to the public cloud due to concerns about data management. Despite existing policies and promises, the fact that their data would still be under the control of a U.S. tech giant has been a significant obstacle.
To address these concerns, the AWS European Sovereign Cloud will offer stringent data controls. It will allow qualifying customers to keep all their metadata within the EU and ensure that AWS employees located outside the EU cannot access any data stored within the region. This level of data protection is crucial for organizations that handle sensitive information and need to comply with strict data residency requirements.
The sovereign cloud will be physically and logically separate from other AWS regions, making it a distinct entity. The inaugural region in Germany will be open to all European customers, including those in the United Kingdom. By establishing a sovereign cloud, AWS aims to provide a secure and compliant solution that meets the specific needs of public sector organizations and highly-regulated industries across Europe.
Interestingly, AWS initially downplayed the concept of a sovereign cloud, with its Chief Security Officer, Stephen Schmidt, referring to it as “a marketing term more than anything else.” However, in late 2022, AWS announced its “digital sovereignty pledge,” which solidified its commitment to data control. This change in approach was likely influenced by growing regulatory pressure and the actions of its cloud rivals.
Microsoft, Google, and Oracle have all thrown their weight behind the sovereign cloud movement. In June 2021, Oracle launched its sovereign cloud for EU customers, highlighting the demand and necessity for localized and controlled data storage options. With these major players recognizing the importance of data sovereignty, AWS has followed suit to remain competitive in the European market.
The establishment of AWS’s European Sovereign Cloud is a significant development for the cloud computing industry in Europe. It demonstrates a concerted effort to address data residency concerns and provide organizations with greater control over their data. By investing billions of euros in this initiative, AWS is signaling its commitment to meeting the unique needs of European customers in highly-regulated sectors. As the sovereign cloud gains traction, it will likely reshape the landscape of cloud computing in Europe and pave the way for increased adoption of public cloud services across various industries.