BERLIN, January 26, 2026 – Cloud customers are facing a stark reality: even with contracts in place, access to critical applications can be abruptly cut off due to geopolitical factors. This unsettling possibility is driving a push for “digital sovereignty” in Europe, and Amazon Web Services is attempting to address these concerns with its new European Sovereign Cloud.
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European businesses are increasingly worried about losing access to cloud services due to international sanctions and political tensions.
Digital Sovereignty-It’s the idea that a country or region should have control over its own data and digital infrastructure, free from the influence of other nations or companies.
Recent events demonstrate the vulnerability. The International Criminal Court’s chief prosecutor was reportedly locked out of Microsoft applications following U.S. sanctions. In 2019, Adobe restricted service to customers in Venezuela in response to U.S. sanctions. More recently, Microsoft temporarily blocked access to Teams and Outlook for Indian energy firm Nayara last year, as reported by CIO.com.
AWS’s European Sovereign cloud is one approach to this challenge, but its effectiveness is being questioned. Creating a separate legal entity for the cloud operation is intended to mitigate these risks, but it’s unclear how much protection that would actually offer if the parent company directed the German subsidiary to take specific actions.
The Legal Gray Area
“Cases will have to be tested in court before we can have a definate answer,” said Dario Maisto, senior analyst at Forrester.”The legal ownership does matter, and this is one of the points that may not be addressed by the current setup of the AWS sovereign cloud.” The question of whether a separate legal entity truly insulates a cloud provider from the directives of its parent company remains open.
Gartner identifies a range of options for European businesses, from using global hyperscaler public cloud services to opting for regional cloud services built on non-hyperscaler technology. Each approach presents its own set of advantages and disadvantages.
Local Partnerships Offer an Choice
To alleviate customer concerns, other hyperscalers are forging partnerships with European cloud providers. Google collaborates with Thales, while Microsoft works with Bleu, a joint venture between Orange and Capgemini. These arrangements involve the hyperscaler providing technology access while maintaining the independence of the European partner.
According to Buest, this model offers a higher degree of “operational sovereignty” than AWS’s European Sovereign Cloud, although some level of technological dependence on the hyperscaler still exists. Ultimately, most organizations will likely adopt a combination of sovereignty strategies tailored to their specific requirements.
- Geopolitical events can disrupt access to cloud services, highlighting the need for digital sovereignty.
- AWS’s european Sovereign Cloud is one attempt to address these concerns, but its legal protections are uncertain.
- Partnerships between hyperscalers and European cloud providers offer a different approach, prioritizing operational sovereignty.
- A mix of sovereignty strategies is likely the most practical solution for most organizations.
