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AWS Executive Says 40% of European Startups Consider Leaving Region to Scale

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AWS Executive Says 40% of European Startups Consider Leaving Region to Scale

An Amazon Web Services executive said Wednesday (Oct. 21) that nearly 4 in 10 European startups, and over half of the fastest-growing ones, have told the company that they would consider leaving the region to scale, Reuters reported Wednesday (Oct. 21).

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“Startups say to us that they’re reconsidering locations because they want funding and support, and they’re not getting enough funding here,” Tanuja Randery, AWS EMEA managing director, told Reuters in an interview.

Randery said that European businesses have told AWS that regulatory compliance costs them as much as 40 cents per euro; that the European Union’s AI Act limits their efforts in artificial intelligence frontier research and AI infrastructure; and that severe energy and grid constraints are also blocking progress around AI.

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CNBC reported in January 2025 that European CEOs were calling for investment in AI infrastructure after President Donald Trump announced Stargate, a $500 billion investment in AI infrastructure in the United States.

Schneider Electric CEO Olivier Blum said in the report that governments should cooperate on AI because companies are increasingly global.

“So, government also has to understand that if they want to have their own domestic companies to be successful outside their home country, they need to find some common agreement,” Blum said.

PYMNTS reported in January 2025 that France’s first minister of AI, Clara Chappaz , urged EU officials not to get “stuck” on the idea of regulating just to regulate, but rather see regulation as a springboard to innovation.


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