AWS will invest millions of euros in a ‘Sovereign Cloud’ in Germany by 2025.

AWS has announced its first ‘sovereign cloud’ region in Europe, which will be located in Brandenburg, Germany, and is expected to be operational by the end of 2025. This initiative aims to strengthen data residency in Europe, with an investment of over 7.8 billion euros until 2040.

The announcement, coinciding with the AWS Summit Berlin, showcases AWS’s commitment to data control and digital sovereignty in Europe. Despite this investment targeting infrastructure and workforce strengthening in Europe, it remains an American company controlling these resources, raising questions about true digital sovereignty for European businesses.

AWS is not only enhancing its infrastructure but also expanding its workforce in Europe with new high-skilled roles for software engineers, system developers, and solution architects. All operations of AWS’s European Sovereign Cloud will be managed exclusively by EU-based personnel, including data center management, technical support, and customer service. However, there are no guarantees that this will always be the case, or that artificial intelligence may replace many of these roles, giving more “control” to American companies over European governmental services.

Max Peterson, vice president of AWS’s Sovereign Cloud, emphasized that this investment aims to provide customers with advanced sovereignty controls, privacy measures, and cloud security features. “We are investing heavily in new local talent and infrastructure, which will help provide the operational sovereignty our customers require,” Peterson stated. “This is an exciting milestone, and we look forward to seeing how our customers and partners across Europe will further drive innovation with AWS’s European Sovereign Cloud.”

For over a decade, Amazon has significantly invested in the European market, contributing over 150 billion euros and employing over 150,000 people in the European Single Market. The launch of AWS’s European Sovereign Cloud is evidence of Amazon’s continued commitment to Europe’s digital advancement.

AWS is also engaged with local communities through innovative long-term programs aiming for sustainable impact in the regions hosting its infrastructure. These programs focus on cloud workforce development and educational initiatives for students of all ages, addressing the skills gap and preparing them for future tech jobs.

An example of this is last year’s collaboration between AWS and Siemens AG, establishing the first data center learning program for AWS in Germany. This program, alongside the introduction of the first national cloud computing certification by the German Chamber of Commerce (DIHK) and the AWS Skills to Jobs Tech Alliance, highlights AWS’s ongoing commitment to workforce education and training.

In the telecommunications sector, the partnership between O2 Telefónica and Nokia to deploy autonomous 5G core software on AWS marks a significant milestone. It is the first time an existing mobile operator transfers its core network operations to a public cloud.

Although AWS has long provided localized data storage and processing options in Europe, public sector bodies and organizations in highly regulated industries have been cautious about migrating to the public cloud due to data management concerns. To address these concerns, AWS’s European Sovereign Cloud offers stricter data controls, ensuring all metadata stays within the EU and is inaccessible to AWS employees outside the bloc.

This “physically and logically separated” cloud environment represents a shift from AWS’s initial stance on the sovereign cloud concept, which was once dismissed as more of a marketing term. However, AWS’s recent “digital sovereignty commitment” solidifies its dedication to offering customers more control and options to meet their unique digital sovereignty needs without compromising AWS’s full capabilities.

It is interesting to observe how American companies are eager to create supposed sovereign clouds in Europe, although they remain owned by American companies. This raises the question of whether European governments should be stricter in choosing cloud service providers and infrastructure, considering that the U.S. government does not contract services with European companies even if they have infrastructure in the U.S.

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