Amazon Web Services (AWS), the cloud computing arm of Amazon, is set to establish a new corporate entity and three subsidiaries in Germany as part of its initiative to create a sovereign cloud within the European Union. Kathrin Renz, Vice President of AWS, will take the helm as managing director of the new German parent company, which will also include officials focused on government security and privacy from within the EU. This new structure aims to oversee the forthcoming AWS European Sovereign Cloud, which is projected to debut by the close of 2025. In their announcement, AWS emphasized that all operations related to the European Sovereign Cloud will be conducted entirely within the EU. “Everything needed to operate the AWS European Sovereign Cloud is in the EU,” the company stated in a blog. They clarified that this cloud will feature independent infrastructure with no operational control outside EU borders. Only AWS employees based in the EU will be responsible for daily operations, ensuring complete compliance with local regulations. The move comes as a response to increasing demands for data residency solutions from tech firms, including AWS competitors like Microsoft and Google, which help organizations adhere to stringent European privacy laws such as the GDPR and Germany's Federal Data Protection Act. In May 2024, AWS announced a substantial investment of €7.8 billion (approximately $8.8 billion) to develop this sovereign cloud in Germany by 2040, with the first cloud region being established in Brandenburg. The AWS European Sovereign Cloud is designed to ensure that customer data and metadata remain within the EU, thereby meeting legal requirements. Alongside this initiative, AWS is also forming an advisory board comprised of EU citizens and setting up a dedicated European security operations center. Renz expressed confidence in the new cloud's design, stating, “We’ve created the AWS European Sovereign Cloud to fulfill European digital sovereignty needs while still offering the security, reliability, and performance that customers expect from AWS.” This investment reflects Amazon's ongoing commitment to supporting Europe's digital landscape, especially given its history with EU regulators concerning competition and data privacy violations. In 2021, the company faced a record €746 million fine from Luxembourg’s data protection authority for allegedly processing user data without consent, and in 2022, AWS resolved an antitrust investigation regarding its use of competitors' sales data.
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