Amazon Web Services (AWS), the cloud computing division of Amazon, has provided additional details about its European “sovereign cloud” initiative, aimed at enhancing data residency capabilities across the continent.
AWS confirmed that the initial AWS sovereign cloud region will be established in Brandenburg, Germany, and is scheduled to become operational by the end of 2025. The company also announced plans to invest €7.8 billion ($8.5 billion) into the facility over the course of the next 15 years, extending until 2040.
This announcement coincides with the AWS Berlin Summit, taking place in the German capital today and tomorrow, marking approximately seven months since AWS initially disclosed its intentions for a sovereign cloud.
Addressing Regulatory Compliance
While AWS has previously offered localized data storage and processing within Europe, some public sector entities and organizations in highly regulated sectors have been hesitant to fully embrace public cloud services due to concerns about data management and control, particularly with a U.S.-based tech company.
The AWS European Sovereign Cloud is designed with stringent data controls, ensuring that all eligible customers can maintain their metadata exclusively within the EU. This means that AWS personnel located outside the EU will not have access to any data stored within the bloc.
In essence, the sovereign cloud will be completely isolated both physically and logically from other AWS Regions.
AWS initially distanced itself from the concept of a “sovereign cloud,” with Amazon’s chief security officer (CSO) Stephen Schmidt referring to it as primarily a marketing term. However, AWS shifted its approach in late 2022 with the introduction of its “digital sovereignty pledge,” solidifying its commitments to data control.
This strategic shift was partly driven by increasing regulatory demands and the competitive landscape, as major cloud providers like Microsoft and Google have also embraced sovereign cloud initiatives. Even Oracle launched a sovereign cloud for EU clients in June of the previous year.
Investment and Job Creation
Part of AWS’ substantial investment will involve creating new positions to support the European sovereign cloud, including roles like software engineers, systems developers, and solutions architects. Additionally, AWS anticipates supporting an average of 2,800 full-time equivalent jobs annually within local German businesses through its supply chain activities, covering areas such as construction, facility maintenance, and telecommunications.