AWS Launches European Sovereign Cloud to Address EU Data Security Demands

2 hour ago 2 sources neutral

Key takeaways:

  • AWS's sovereign cloud investment signals long-term regulatory compliance costs for tech giants.
  • European data sovereignty push may accelerate adoption of decentralized cloud alternatives like Filecoin.
  • Increased regulatory scrutiny on centralized cloud providers could benefit privacy-focused blockchain projects.

Amazon Web Services (AWS) has officially launched its European Sovereign Cloud, a new cloud service physically and legally separate from its other global operations. The service, based in Brandenburg, Germany, is designed to meet stringent European data residency and sovereignty requirements. AWS is investing over 7.8 billion euros through 2040 to build data centers in Germany, with plans to expand to Belgium, the Netherlands, and Portugal.

The cloud infrastructure is operated by a German company, with management and advisory boards consisting entirely of EU citizens. AWS stated the system has "no critical dependencies on non-EU infrastructure" and can function independently, even if Europe were disconnected from the internet or if the U.S. prohibited software exports. Under extreme circumstances, authorized EU-resident employees would have access to source code replicas to maintain services.

The launch addresses growing European regulatory pressure and concerns over U.S. tech dominance. The U.S. Cloud Act, which requires American companies to grant authorities access to data stored globally, has fueled demand for regional alternatives. AWS, Microsoft, and Google collectively control approximately 70% of the European cloud market, according to Synergy Research Group. Both Microsoft and Google are also pursuing similar regional cloud strategies to cater to customers with strict data security needs.

The rollout comes as European regulators investigate cloud services from Amazon and Microsoft under the Digital Markets Act, legislation aimed at curbing the power of major tech firms in the region.

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