Cloud has become the backbone of modern IT, increasing the importance of digital infrastructure and with it the need for control. Organizations in regulated industries such as healthcare, finance or the public sector face a dilemma: they want to benefit from the advantages of the public cloud while meeting strict legal and security requirements. A new approach offers a solution: sovereign clouds that preserve independence while still enabling agility and progress. AWS recognized this tension and responded with the announcement of the European Sovereign Cloud.
Why Organizations Are Rethinking Their Strategies
Cloud adoption is accelerating and it is now essential for digital competitiveness. But as digitalization increases, so does the importance of data security. The US CLOUD Act obligates American vendors to provide data to US authorities upon request, even if that data is stored in European data centers. This contradicts European privacy standards and also undermines strategic independence.
In a time of geopolitical uncertainty, digital sovereignty becomes even more critical. What happens if data flows are influenced by political interests? What if foreign governments demand access to critical IT systems or block it? As a result, organizations are increasingly reassessing their reliance on international hyperscalers and exploring alternatives that offer more sovereignty and resilience.
Digital sovereignty refers to the ability of organizations to control where their data is stored, how it is processed and how it is protected. It goes far beyond data protection. It includes managing, operating and evolving digital systems independently. The goal is an IT infrastructure that remains unaffected by political, legal or economic influence. Studies such as the ZEW economic survey show that companies place significant importance on digital sovereignty for business success as well as for Europe’s economic future.
The AWS European Sovereign Cloud at a Glance
With the European Sovereign Cloud, AWS delivers a solution designed specifically for European customers. At the core is a newly established company headquartered in the EU that operates financially and organizationally independent from the US parent. All operations including support, infrastructure and staffing take place entirely within Europe. This ensures that neither the US CLOUD Act nor other non-European laws can access any data or systems.
At the same time, customers retain the familiar AWS foundation: access to the same AWS services, APIs and tools including databases, storage solutions, analytics, AI, IoT, security and developer tools. AWS delivers high performance and scalability without compromising sovereignty.
The new region is strategically located in Brandenburg, Germany, chosen for its strict data protection standards. AWS plans to invest approximately 7.8 billion euros into the region by 2040. Multiple availability zones are planned to ensure redundancy and resilience. AWS Control Tower for account management, Security Hub for security policies and CloudTrail for auditing changes provide transparency and control.
While organizations could previously use EU-based AWS regions such as Frankfurt, a residual risk remained. Metadata such as file sizes, access rights, IP addresses or usage behavior was sometimes transferred outside Europe for support purposes. In addition, governance and support remained under global oversight.
The new Sovereign Cloud addresses these issues and goes further. It is fully separated physically and logically from the global AWS network. All processes from data and metadata to billing and management run entirely through European systems.
Comparison with Other Providers
Microsoft and Google also recognize the importance of sovereign clouds and are taking similar steps. They primarily rely on partnerships with European IT organizations. For example, Delos Cloud based on Microsoft technology is being developed in collaboration with SAP and Arvato Systems. Google works with T Systems to deliver an independent and compliant cloud environment for Germany. These are important initiatives but they do not provide full separation from the US parent companies.
At the same time, European providers such as Ionos and Stackit are gaining traction. They offer strong sovereignty concepts but cannot yet match the functional range of the large hyperscalers. With its Sovereign Cloud, AWS offers a unique combination of broad service coverage and full data autonomy.
This new offering is aimed especially at organizations with highly sensitive data and strict compliance requirements including public sector institutions, critical infrastructure operators and companies in industries such as healthcare and finance. While costs may be higher than the standard AWS Cloud, the added security and legal compliance often justify the investment. Hybrid architectures present additional opportunities. Sensitive data can be stored in the sovereign cloud while less critical workloads remain in traditional environments.
Preparing for a Smooth Migration
Organizations should not wait until the official launch at the end of 2025. Those who analyze their data landscape early will reduce effort later. A critical question is: Which applications and data are considered sensitive and to what extent? Clear classification enables targeted migration.
It can be beneficial to restructure application landscapes, such as decoupling sensitive components. Zero trust approaches and encryption technologies can already improve the security posture in existing AWS regions today.
Migrating into a sovereign cloud is not simple. A survey by CIO, CSO and Computerwoche found that 90 percent of companies see a strong need for consulting support. An experienced partner ideally one with the AWS Digital Sovereignty Competency can make a decisive difference. It is also crucial that the service provider is based in the European Union and covers all relevant services from initial consulting and architecture to migration and managed services.