AWS To Invest $8.4 Billion Into Its AWS European Sovereign Cloud

As enterprises move to cloud environments to accrue its vast benefits, cloud providers find themselves needing to update their cloud infrastructure, cloud services and enhance their data centers, while also providing region-based and personalized customer service, technical support and other services. 

Furthermore, the acceleration of artificial intelligence (AI) and generative artificial intelligence (GenAI) platforms and tools has increased the dependencies businesses have on cloud environments.

As a result, industry leader, Amazon Web Services AKA AWS, Amazon’s cloud computing division, has made an announcement that’s set to boost its offerings in Europe and other benefits to the region.

So, what did AWS announce? Let’s explore!
 

What Did AWS Announce?

 

• Through a news release published on its website, Amazon announced that its cloud computing platform Amazon Web Services, AWS, announced plans to invest €7.8 billion ($8.4 billion) in the AWS European Sovereign Cloud in Germany.

• The move comes as the European Union (EU) is looking to enhance data sovereignty, data protection and data residency of data generated in Europe.

• The plan is a long-term one that will see its investments run through 2040, with plans to launch the first AWS Region in the State of Brandenburg, Germany, by 2025-end, which will be available to all customers.

• AWS’s move is expected to boost the local cloud community, aid digital transformation of business, upskill the cloud and digital workforce, develop renewable energy projects and accelerate productivity along with other benefits.

• Amazon’s planned investment is estimated to contribute €17.2 billion ($18.6 billion) to Germany’s total GDP (Gross Domestic Product) and support an average of 2,800 full-time equivalent jobs in local businesses.

• These jobs are part of the company’s data center supply chain and include construction, facility maintenance, engineering, telecommunications and others.

• Additionally, AWS will bring in highly skilled permanent jobs to build and operate the AWS European Sovereign Cloud, which include roles such as software engineers, system developers and solutions architects.

• The plan is to offer important and day-to-day operation roles to personnel located in the EU, including control of access to data centers, technical support and customer service functions.

• This investment adds to Amazon’s previous ones, which includes over €150 billion ($162 billion) in the European Union (EU) since 2010 and the 150,000+ permanent jobs the company holds in the region.

• As for Germany, the company hosted over 36,000 jobs (as of 2022) with corporate offices in 11 cities and more than €65 billion ($70 billion) invested since 2010.

• As per the release, “The launch of the AWS European Sovereign Cloud builds on our long-term commitment to Europe and ongoing investment in its digital future.”

 

What Did Stakeholders Say?

 

• Max Peterson, Vice President of Sovereign Cloud at AWS, said, “This investment reinforces our commitment to offer customers the most advanced set of sovereignty controls, privacy safeguards, and security features available in the cloud. We're investing heavily in new local talent and infrastructure, which will help provide the operational sovereignty our customers require.”

• [Contd.] “This is an exciting milestone, and we're looking forward to the ways that our customers and partners across Europe will drive further innovation with the AWS European Sovereign Cloud.”

• Prof. Dr. Jörg Steinbach, Brandenburg’s Minister of Economic Affairs, Labour and Energy, said, “High performing, reliable, and secure infrastructure is the most important prerequisite for an increasingly digitalized economy and society. Brandenburg is making progress here. In recent years, we have set on a course to invest in modern and sustainable data center infrastructure in our state, strengthening Brandenburg as a business location.”

• “State-of-the-art data centers for secure cloud computing are the basis for a strong digital economy. I am pleased Amazon Web Services (AWS) has chosen Brandenburg for a long-term investment in its cloud computing infrastructure for the AWS European Sovereign Cloud.”

Do you think this move by AWS will help it build a better market position with its existing and prospective customers? Do you think its competitors should make similar moves?

Let us know in the comments below!