Europe has begun to actively test the waters of cloud sovereignty, with 72% of European businesses prioritizing data control when selecting technology vendors. However, despite the growing desire to protect data integrity and security within European borders, over 70% of European businesses use US hyperscalers from their cloud computing provider.
While Google is doubling down on its commitment to data sovereignty, there is a growing concern over hyperscalers’ dominance over the European market, as it leaves critical infrastructure in the hands of dominant foreign providers.
As sweeping tariffs continue to escalate tensions between Europe and the US’s big tech, many are questioning whether Google’s commitment is enough to protect Europe’s data from the Big Three.
US influence on Europe’s tech ecosystem
US Policies, like the 2018 Clarifying Lawful Overseas Use of Data (CLOUD) Act, give US hyperscalers massive influence in Europe. The act grants US authorities and federal agencies access to data stored by US cloud service providers, even when hosted in Europe. This raises concerns about whether European data stored with US-based providers can ever truly be sovereign, even if housed within European borders.
Another concern in Europe: being cut off from US services. If Europe were to suddenly lose access to US cloud services or face rising costs, businesses would experience immediate setbacks, from service disruptions to escalating operational expenses. These concerns, along with a push for more leadership, independence, and economic competitiveness, have led to Europe steadily building its own cloud ecosystem – fostering a network of regional providers and implementing policies that reinforce data independence.
The question has now become, do these changes signal a true tipping point for Europe? Or are they merely the first steps in a much longer transformation?
Who is driving the adoption of sovereignty?
Both the public and private sectors play pivotal roles in advancing cloud sovereignty across Europe. Governments have established regulatory frameworks to enhance standards and avoid fragmentation. However, policymaking is often slow and subject to political negotiation, making private sector initiatives crucial in accelerating the shift toward true sovereignty.
The private sector has emerged as a driving force behind the practical implementation of sovereignty ideals. According to Dominique Tessier, Head of Cybersecurity Focus Group at the European Champions Alliance (ECA), “the move to make sure the EU Cloud Certification Scheme will finally include an “upper security layer” is mainly driven by private European companies, as AIRBUS, EDF, Telecom Italia and others, whose efforts are gaining momentum”.
While companies like Microsoft have invested heavily in EU infrastructure to comply with local regulations, concerns remain about whether this represents true sovereignty or just a regulatory workaround. In contrast, European companies and partnerships, such as the joint venture between OVHcloud and Capgemini, are working to offer services independent of US control, aiming to create fully sovereign cloud solutions.
These initiatives reflect a growing acknowledgement of the strategic importance of cloud sovereignty. This is supported by Rahiel Nasir, Research Director, IDC Europe, who states that “interest in sovereignty has moved from governments and regulated sectors to all industry sectors, especially in Europe, and everywhere else where cloud is just beginning to pick up”. These efforts are becoming more widespread, indicating a collaborative push towards achieving European digital independence, but more needs to be done to make this achievable.
How can Europe achieve ‘true sovereignty?’
Achieving true cloud sovereignty requires more than just localized data storage, it demands complete independence from hyperscalers. To achieve this, Europe must go beyond compliance and foster a robust ecosystem of local providers that can match and work alongside hyperscalers.
While hyperscalers play a role in the broader cloud landscape, they should not be relied upon for sovereign data. According to Tessier, “the new US Administration has shown that it won’t hesitate to resort either to sudden price increases or even to stiffening delivery policy. It’s time to reduce our dependencies, not to consider that there is no alternative”.
For Nasir, the key is striking a balance. “In an ideal scenario, local providers and global providers should partner for sovereignty to work at scale”. Leveraging their capabilities where appropriate while ensuring critical data and workloads remain within truly sovereign infrastructure.
By shifting away from hyperscaler dependency and building a diverse, sovereign infrastructure, organizations can move beyond regulatory compliance and achieve operational independence within their own jurisdictions.
The path to sovereignty
While Europe is leading the way in advocating for cloud and digital sovereignty, achieving true independence requires a strategic balance. Reducing reliance on US hyperscalers while developing competitive local alternatives is crucial. This balance involves leveraging public and private sector initiatives to create an environment where local providers can thrive and compete on a global scale.
Ultimately, sovereignty is not just about regulatory compliance; it’s about a strategic vision for independence. Empowering local providers and creating interconnected networks will allow Europe to set its own digital agenda and drive long-term economic and technological growth, helping to achieve “true” sovereignty.
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