Amazon's New Sovereign Cloud Solidifies its Long-Term Growth Potential

Amazon.com Inc. (NASDAQ:AMZN) is one of the best future stocks to buy for the long term. On January 15, Amazon’s cloud division, AWS, launched the AWS European Sovereign Cloud, which is a new service designed to provide a secure, independent alternative for users concerned about data residency and the influence of US-based providers.

The data centers for this service are physically and legally isolated from Amazon’s global server network. This structure ensures that the cloud remains operational even under extreme circumstances, such as the EU being disconnected from the global internet or the US imposing software export prohibitions. The initiative addresses growing European anxieties regarding the US Cloud Act, which allows American authorities to access data stored abroad by US companies.

To ensure complete sovereign autonomy, AWS Germany CTO Michael Hanisch confirmed that the cloud will be operated and monitored by a German company. The management and advisory boards will consist of EU citizens, and eventually, all employees associated with the service will be required to hold EU citizenship. Amazon is backing this expansion with an investment exceeding 7.8 billion euros ($6.41 billion). The first data center is currently under construction in the German state of Brandenburg.

Amazon.com Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.