The cloud market will exceed a value of $1.4trn according to GlobalData. Credit: T.Schneider/shutterstock

Amazon Web Services (AWS) has invested $8.5bn (€7.8bn) into its European Sovereign Cloud in Germany. 

The European Sovereign Cloud is intended to be an independent cloud service for Europe’s public sector that complies with the EU’s data protection laws. 

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It will first launch its AWS services in Brandenburg state by 2025. 

AWS’ upfront investment of $8.5bn is part of a wider commitment to its European Sovereign Cloud which will see AWS invest in Europe until the 2040s. 

By 2040, AWS hopes that its investment will contribute at least €17bn to Germany’s GDP and support nearly 3,000 jobs in Germany’s economy each year. 

To help its cloud infrastructure in Germany, AWS has also stated it will create new permanent jobs in the country for software engineers, systems developers and solutions architects. 

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AWS has already invested over €150bn into Europe since 2010 and currently employs around 150,000 European citizens. 

AWS’ vice president of sovereign cloud, Max Peterson, commented that its $8.5bn investment would help AWS offer its customers the best security cloud features. 

“We’re investing heavily in new local talent and infrastructure, which will help provide the operational sovereignty our customers require,” Peterson said. 

“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,” he stated. 

In its 2024 thematic intelligence report into cloud, research and analysis company GlobalData estimates that the total cloud market will be worth $1.4trn by 2027, achieving a CAGR of 17.1% from 2022. 

Geographically, the Asia-Pacific region currently accounts for the largest percentage of the world’s cloud computing revenue at 33% as of 2023. 

In contrast, Western Europe only accounted for 18% of global cloud revenue that same year. 

Over the next few years, GlobalData forecasts that Western Europe and the US regions will continue losing market share to Asia Pacific due to rapid growth in India, Australia, China and Indonesia’s cloud industries.