AWS Launches European Sovereign Cloud: Amazon’s €7.8bn Bet on Digital Autonomy

Amazon just flipped the switch on a massive power play in Europe.¹ As of Thursday, January 15, 2026, Amazon Web Services (AWS) has officially launched the AWS European Sovereign Cloud, a high-stakes move to stop EU governments and banks from defecting to local rivals.²

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The thing is, EU leaders have been spooked. Between the U.S. CLOUD Act (which lets the FBI snooping on data regardless of where it’s stored) and the geopolitical “weirdness” of the second Trump administration—like that renewed talk about annexing Greenland—Europe is desperate to cut the digital umbilical cord.³ Or nothing. Let’s be real, Amazon is trying to prove it can be more “European” than the Europeans.

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The “Sovereign Cloud” Log: Field Notes

It’s an ongoing situation where “Data Sovereignty” has moved from a boring legal buzzword to a multi-billion dollar arms race.

• The “Brandenburg” Anchor: The first region is live in Brandenburg, Germany.⁴ The thing is, it’s not just a server in a basement; it’s a completely independent “island” of infrastructure, physically and logically cut off from the rest of AWS’s global network.⁵

• The Expansion: Amazon is already pushing into Belgium, the Netherlands, and Portugal with new “Sovereign Local Zones.”⁶ And here’s the kicker—it’s operated exclusively by EU residents who are overseen by a new German-incorporated parent company.⁷ Those too.

• The “Sovereignty Washing” Cry: Critics aren’t buying it.⁸ A computer science professor in Wuerzburg called it “sovereignty washing,” arguing that as long as the parent company is American, the U.S. government still has a legal “hook” into that data.⁹ The thing is, AWS says their Nitro System (hardware-level encryption) makes it impossible for even their employees to see your data.¹⁰

• The 20 Billion Euro Counter: While Amazon builds, SAP is throwing around a massive €20 billion investment into its own “EU AI Cloud.”¹¹ They’re betting that true sovereignty only comes from a company that doesn’t have a head office in Seattle.

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The 2026 Cloud Sovereignty Scorecard

And Here’s the Kicker…

The timing is everything. This launch comes just as the European Commission is investigating both Amazon and Microsoft to see if their cloud units should be labeled “gatekeepers” under the Digital Markets Act.¹² The thing is, if Amazon can prove they are “fully sovereign,” they might dodge some of the nastier regulatory bullets coming their way.

It’s an ongoing situation where even the German Federal Office for Information Security (BSI) is backing this “dual strategy”—strengthening local players like IONOS and Hetzner while forcing giants like AWS to build “European instances.”¹³ The thing is, by the time we hit 2027, your “cloud” might look less like a global web and more like a series of gated communities.

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End…

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