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

> AWS executive reveals 40% of European startups plan to leave region for scaling due to funding and regulatory hurdles.
- Title: AWS Executive Says 40% of European Startups Consider Leaving…
- Summary: AWS executive reveals 40% of European startups plan to leave region for scaling due to funding and regulatory hurdles. 40% of European startups consider…
- Keywords: aws, ai act, european startups, regulatory compliance, funding, business, finance, Executive, European, Startups, Consider, Leaving
- Source: Pymnts — https://pymnts.com/startups/2026/aws-executive-says-40-of-european-startups-consider-leaving-region-to-scale
- Author: PYMNTS
- Published: 2026-10-21T23:23:13+00:00
- Read time: 1 min
- Topics: aws, eu, ai act, european startups, regulatory compliance, funding, business, finance
## AWS executive reveals 40% of European startups plan to leave region for scaling
AWS executive says nearly 4 in 10 european startups and over half of fastest-growing ones consider leaving the region to scale.
## Regulatory costs and AI restrictions block startup progress
European businesses report regulatory compliance costs 40 cents per euro and ai act limits ai research and infrastructure.
## EU AI Act criticized as 'sledgehammer' by ibm
ibm ceo arvind krishna called eu ai act a 'sledgehammer' while urging light-touch regulation for ai innovation.

> a sledgehammer
## Key takeaway

40% of European startups consider leaving the region to scale as AWS reports funding and regulatory barriers.