AWS Launches European Sovereign Cloud – Addressing Europe’s growing demands for digital sovereignty

Amazon Web Services (AWS) has launched the AWS European Sovereign Cloud, a new independent cloud infrastructure designed to meet Europe’s increasing demands for digital sovereignty, data residency, and protection from non-EU legal influences like the US CLOUD Act.

The service became generally available on January 15, 2026, following plans first announced in 2023.

The first region is located in Brandenburg, Germany, and is physically and logically separate from all other AWS regions worldwide. It features multiple Availability Zones for high availability and redundancy, with infrastructure engineered to operate continuously—even if disconnected from the global internet or facing export restrictions.

A core feature is its operational independence: The cloud is run exclusively by EU residents and citizens based in the EU. AWS established a new, locally controlled parent company incorporated in Germany to oversee it. All data, metadata, billing information, identity and access management (IAM), and operational activities remain entirely within the EU. Leadership includes managing directors Stéphane Israël (appointed October 2025) and Stefan Hoechbauer (appointed January 2026), both EU citizens.

This setup targets European governments, public sector entities, and highly regulated industries such as finance and healthcare. These organizations often require strict compliance with GDPR, stringent data residency rules, operational autonomy, and safeguards against extraterritorial data access requests.

Customers receive a “fully featured” AWS experience, starting with around 90 services backed by the same core AWS technology, APIs, security features, and architecture familiar from global regions. Key security capabilities include support for AWS Nitro Enclaves, which provide hardware-enforced confidential computing for processing sensitive workloads in isolated environments with cryptographic attestation—ensuring code integrity and preventing external access, even by AWS operators.

AWS has committed €7.8 billion to this initiative, covering infrastructure development, job creation, and skills programs across Europe. The investment underscores the company’s focus on the region.

Expansion plans include extending the sovereign cloud across the EU. It will begin with new AWS Local Zones in Belgium, the Netherlands, and Portugal to enable lower-latency access and enhanced in-country data residency. These will support dedicated, single-tenant environments for ultra-sensitive workloads requiring maximum isolation.

The launch positions AWS as offering one of the most isolated sovereign cloud options among major US hyperscalers. Compared to competitors:

• Microsoft Azure uses logical boundaries and EU data controls within existing regions, with strong ecosystem integration (e.g., for Microsoft 365) and expanding in-country AI processing, but lacks full physical separation.
• Google Cloud relies on technical controls like Assured Workloads, external key management, and partner-operated dedicated setups (e.g., with Thales or T-Systems), emphasizing flexibility for AI but often depending on local partners for deeper sovereignty.

While AWS’s model provides the strongest combination of independence, full service breadth, and technical protections, critics note that ultimate ownership remains with US-based Amazon, leaving potential residual jurisdiction risks under US law. Some argue true sovereignty would require majority EU ownership or fully European providers like OVHcloud.

Overall, the AWS European Sovereign Cloud raises the bar for compliance in Europe’s cloud market, responding to regulatory pressures and customer needs for greater control. It offers public sector and regulated organizations a powerful option to innovate while aligning with sovereignty goals.