AWS Expands to Germany: Advancing European Sovereign Cloud
AWS Launches Sovereign Cloud in Germany
Amazon Web Services (AWS), the cloud computing arm of Amazon, is establishing a new parent company and three subsidiaries within Germany.
This move is integral to the launch of a sovereign cloud initiative specifically designed for the European Union.
Leadership and Operational Control
Kathrin Renz, currently a Vice President at AWS, will assume the role of managing director for AWS’ newly formed German corporate parent.
The leadership team will also include EU-based officials specializing in government security and privacy, as stated by Amazon.
This German entity will be responsible for overseeing the AWS European Sovereign Cloud, which is projected to become operational by the close of 2025.
EU-Based Operations
AWS emphasizes that all components necessary for operating the AWS European Sovereign Cloud will be situated within the EU.
Crucially, there will be no operational control exerted from outside EU borders.
Only AWS personnel residing within the EU will manage daily operations, encompassing access to data centers, technical assistance, and customer support for the sovereign cloud.
Growing Trend of Sovereign Clouds
A rising number of technology companies and cloud service providers, including competitors like Microsoft and Google, are now offering European sovereign cloud solutions.
These programs assist customers in adhering to European data protection regulations, such as the GDPR and Germany’s Federal Data Protection Act.
Significant Investment
In May 2024, AWS announced a substantial investment of €7.8 billion (approximately $8.8 billion) to construct the AWS European Sovereign Cloud in Germany.
This investment will continue through 2040, with the initial cloud “region” slated to go live in the state of Brandenburg.
Independent Infrastructure
The AWS European Sovereign Cloud will utilize infrastructure located entirely within the EU and will function independently from AWS’ existing cloud regions.
This allows customers to maintain their data and metadata – including AWS configuration settings – within the EU, ensuring compliance with relevant laws and regulations.
Alongside the new German corporate structure, AWS is also creating an advisory board comprised of EU citizens and a dedicated European security operations center.
Commitment to Digital Sovereignty
“We’ve designed the AWS European Sovereign Cloud to address European digital sovereignty requirements,” stated Renz.
“It maintains the services portfolio, security, reliability, and performance that customers expect from AWS.”
Renz further affirmed that this investment underscores AWS’ dedication to Europe’s digital future.
Past Regulatory Challenges
Amazon has previously faced scrutiny from European regulators regarding compliance with EU competition and data privacy rules.
In 2021, Luxembourg’s data protection authority imposed a significant fine of €746 million (around $849 million) on Amazon.
This penalty stemmed from allegations of processing user data for targeted advertising without obtaining proper consent.
Furthermore, in 2022, AWS resolved an EU antitrust investigation concerning the alleged misuse of rivals’ sales data to benefit its own products.