New York, January 15, 2026, 16:22 EST — After-hours
- Amazon shares ticked up roughly 0.7% in after-hours trading following AWS’s rollout of a Europe-only “sovereign cloud”
- Rio Tinto has struck a two-year agreement to provide copper for Amazon’s AI data centers
- Investors are tracking EU cloud demand, AI investment trends, and the upcoming earnings season closely
Amazon.com shares climbed about 0.7% to $238.20 in after-hours trading Thursday following the launch of a Europe-only “sovereign cloud” by its AWS unit. The new service keeps data and operations strictly within EU rules, with data centres physically and legally isolated from AWS’s other servers. Michael Hanisch, CTO of AWS Germany, said the setup could continue operating even if the EU lost internet access or if the U.S. restricted software exports. Microsoft and Alphabet’s Google are also targeting this regulated market segment. (Reuters)
Timing is crucial. Europe’s drive for “digital sovereignty” has shifted from policy discussions to actual procurement, with cloud contracts in sectors like government, finance, and healthcare becoming tougher to secure and stretching over longer terms.
For Amazon, this goes beyond optics. AWS remains the growth engine investors rely on, and any new data on the cost of launching regions compared to adoption speed can rapidly shift sentiment.
Amazon is set to pump over €7.8 billion into a new project in Germany, with plans to add “Local Zones”—smaller setups nearer to users—in Belgium, the Netherlands, and Portugal, AWS announced. The European Sovereign Cloud will operate with “zero operational control” from outside the EU and be managed solely by EU residents. (Nasdaq)
Rio Tinto announced it will provide copper extracted from an Arizona mine to Amazon, fueling AI data centers, highlighting the surge in server demand reshaping raw material supply chains. The two-year deal involves parts made for AWS using Rio’s Nuton leaching technique at a Gunnison Copper-owned site. Neither company revealed terms or volumes. (Reuters)
Amazon made headlines in U.S. bankruptcy court this week by challenging Saks Global’s financing plan, warning that its $475 million equity stake could end up “worthless” under the current proposal. Despite Amazon’s objections, a judge gave the green light on Wednesday for Saks to tap an initial $400 million from a $1.75 billion funding package, Reuters reported. (Reuters)
Regulators remain in focus. On Wednesday, Amazon announced it will appeal an Italian court ruling that lowered—but didn’t wipe out—a record fine over competition issues in e-commerce logistics. The company said it “strongly disagree[s] with the decision” after the penalty was reduced to 752.4 million euros from 1.13 billion euros. (Reuters)
Amazon confirmed it has been in talks with some vendors about pricing after U.S. tariffs on Chinese imports dropped, responding to a Financial Times report that it was pressing suppliers for discounts. The average tariff rate fell to around 47% from 57%. A company spokesperson said Amazon is “continually working” with its selling partners, aiming to keep a wide selection and low prices. (Reuters)
Wall Street is debating the impact of AI on Amazon’s retail advantage. On Thursday, Raymond James lowered its price target on Amazon to $260 from $275, citing risks from “Agentic Commerce” — software agents that shop and check out on behalf of consumers. The firm labeled Amazon a “tweener” in its AI-stack framework and said the AI story will be the “primary factor” driving the stock over the coming year. (Investing.com South Africa)
But the near-term trade is messy. Sovereign cloud projects often stretch over years before scoring major contracts, with spending ramping up ahead of any revenue gains. Added regulatory hurdles in Europe, fresh supplier disputes, or a weaker ad market could further muddy the waters.
Investors are eyeing Amazon’s upcoming earnings report, due Feb. 5 after the bell, according to Yahoo Finance, for fresh insight into AWS growth and the pace of AI and data-center investment. The company’s guidance on operating margin and capital spending will probably steer the stock’s direction next week. (Yahoo)
