Amazon’s $9B Power Move: Taps Software Giant to Launch ’Independent Cloud for Europe’

Amazon makes $9 billion sovereignty play in European cloud wars.

The Tech Titan's European Gambit

Amazon is deploying serious capital to carve out Europe's digital future. The $9 billion push signals a strategic pivot toward regional data sovereignty—a direct response to growing regulatory pressure across EU markets.

Building Cloud Fortresses

The partnership with an unnamed software heavyweight suggests Amazon isn't just expanding infrastructure. They're constructing entirely independent cloud ecosystems that comply with Europe's strict data governance frameworks while bypassing traditional compliance headaches.

Market Domination by Division

This isn't mere expansion—it's architectural warfare. By creating segmented cloud environments, Amazon positions itself as both global provider and local partner. The move could redefine how tech giants operate across regulated markets worldwide.

Because nothing says 'commitment to European values' like a $9 billion calculated business decision.

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A sovereign cloud is a type of cloud infrastructure that maintains data within a specific country or region in terms of physical location, legal frameworks, and management. The infrastructure is designed to serve industries such as government, healthcare, and finance, where strict data residency, privacy, and compliance are mandated.

‘Independent Cloud for Europe’

The $9 billion program, officially known as the AWS European Sovereign Cloud, is being tailored to offer “a new independent cloud for Europe,” Amazon has emphasized. SAP, under the partnership, is expected to contribute its sovereign cloud capabilities to the project.

The update comes about four months after Amazon disclosed plans to create a parent company for the service, with Kathrin Renz, the vice president of AWS Industries, tapped as its first managing director. Earlier in the year, the tech giant also signed a cooperation agreement with Germany’s national cybersecurity authority with the goal of “furthering technical standards for operational separation and data FLOW management within the AWS European Sovereign Cloud.”

Amazon Ramps Up Cloud Partnerships

SAP is only one in a long list of partners Amazon has onboarded for the sovereign cloud service. This year, the tech giant onboarded several key partners, including MongoDB (MDB) for its modern document database and Snowflake (SNOW) for its artificial intelligence and data cloud platform.

Previously, the company entered collaboration agreements with companies such as Adobe (ADBE) for its suite of digital experience tools, Cisco (CSCO) for its network security technology, and GitLab (GTLB) for its AI-powered developer experience.

The development comes as data protection, privacy, and sovereignty have risen to the top of the political agenda. Over 80% of European businesses that deploy cloud solutions are either currently using or preparing to use sovereign cloud technology, according to estimates.

The driving force behind the movement is the goal of reducing dependence on foreign countries and achieving greater control over digital assets.

Is Amazon a Buy, Sell, or Hold?

Turning to Wall Street, Amazon’s shares boast a Strong Buy consensus recommendation on TipRanks, based on 45 Buys and one Sell assigned by Wall Street analysts over the past three months.

Moreover, at $264.51, the average AMZN price target indicates a 20% growth potential from the current level.