Amazon (AMZN) Stock: AWS Takes on Microsoft and Google with European Cloud Launch
TLDR
Amazon Web Services launched its European Sovereign Cloud on Thursday with data centers physically and legally separate from U.S.-based servers.
The cloud operates independently and can function even if Europe disconnects from the internet or the U.S. prohibits software exports.
AWS is investing over 7.8 billion euros to build data centers in Brandenburg, Germany, with expansion planned for Belgium, Netherlands, and Portugal.
The cloud will be operated by a German company with EU citizen management and employees to address European data security concerns.
Microsoft and Google are also competing for European customers with heightened data security requirements through similar regional solutions.
Amazon Web Services rolled out its European Sovereign Cloud on Thursday. The move comes as U.S. tech giants face mounting pressure over data security in the region.
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The new cloud service operates from data centers in Brandenburg, Germany. These facilities are physically and legally separate from Amazon’s other servers worldwide.
AWS Germany Chief Technology Officer Michael Hanisch told Reuters the cloud can operate independently. It will function even if the European Union disconnects from the internet or if the U.S. prohibits software exports.
The launch addresses growing European concerns about U.S.-based cloud providers. The Cloud Act requires American companies to grant authorities access to data stored anywhere in the world.
European customers increasingly want alternatives to U.S.-dominated technology. They’re worried about legal data access granted to American authorities under current laws.
Competition Heats Up in European Cloud Market
Microsoft and Google are also pursuing customers with strict data security requirements. Microsoft stores European customer data exclusively in regional data centers upon request.
Google announced 5.5 billion euros in investments for German data centers last year. The three companies control 70% of the cloud computing market in Europe according to Synergy Research Group.
AWS is backing its European expansion with more than 7.8 billion euros through 2040. The first data center in Brandenburg will be followed by additional facilities across Germany.
The company plans to expand the sovereign cloud to Belgium, the Netherlands, and Portugal. Construction timelines for these locations haven’t been disclosed.
EU Citizens Control New Cloud Operations
A German company will operate and monitor the European AWS cloud. The management and advisory board consists entirely of EU citizens.
All employees will eventually need EU citizenship. Stéphane Israël leads the AWS European Sovereign Cloud with Stefan Hoechbauer serving as managing director.
The cloud includes controls and legal safeguards meeting European requirements for sensitive data processing. AWS said the system has no critical dependencies on non-EU infrastructure.
Under extreme circumstances, authorized EU resident employees can access source code replicas. This ensures continued operation of the sovereign cloud services.
AWS hasn’t set a customer target for the new cloud service. The company faces ongoing regulatory scrutiny from European authorities.
European regulators are investigating cloud computing services from Amazon and Microsoft under the Digital Markets Act. The law aims to curb Big Tech’s power in the region.
The AWS European Sovereign Cloud went live Thursday after being first announced in 2023. Amazon said the cloud is physically and logically separate from other AWS regions worldwide.
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Filed under: News - @ January 15, 2026 10:24 am