European nations and companies are actively pursuing alternatives to U.S.-based cloud service providers, driven by concerns over data sovereignty, privacy, and geopolitical tensions. The dominance of American tech giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud has prompted European governments and businesses to explore homegrown solutions to reduce reliance on foreign technology.
In the Netherlands, the Dutch parliament has approved motions urging the government to decrease dependence on U.S. software companies. These motions advocate for the creation of a Dutch-controlled cloud services platform and the development of European software alternatives. Lawmakers cited autonomy and cybersecurity concerns, particularly in light of strained relations with the U.S. under President Donald Trump’s administration. Additionally, there are calls to reassess the use of Amazon’s web services for hosting the Netherlands’ internet domain and to prioritize European firms in public tenders.
European cloud service providers are experiencing increased interest as organizations look for alternatives to U.S. giants. Companies like Exoscale and Elastx have reported a surge in potential customers seeking services that align with Europe’s stringent data protection regulations.
Joakim Ohman, CEO of Elastx, summed up the mood in Europe when he said. “It’s a big worry about the uncertainty around everything. And from the Europeans’ perspective—that the US is maybe not on the same team as us any longer.”
Mathias Nöbauer, the CEO of Swiss-based hosting provider Exoscale, noted, “Some customers were very explicit. Especially customers from Denmark being very explicit that they want to move away from US hyperscalers because of the US administration and what they said about Greenland.”
This shift is partly motivated by fears that U.S. tech firms could be compelled to share data with their government, potentially compromising European user information. It is also fuelled by a broader concern about the influence of U.S. tech companies.
The European Union is actively discussing strategies to bolster its tech industry, including creating a capital markets union and investing in innovation. The goal is to build a digital future rooted in European values of quality, transparency, and democratic governance.
The Gaia-X initiative, launched by Germany and France in 2019, aims to establish a federated, secure data infrastructure for Europe. Supported by companies such as Deutsche Telekom, Siemens, and OVHcloud, Gaia-X seeks to promote transparency, data protection, and interoperability among European cloud providers. The project reflects Europe’s commitment to achieving digital sovereignty and reducing dependency on non-European technologies.
While transitioning to European cloud providers presents challenges, including scalability and competition with established U.S. firms, the momentum towards digital sovereignty continues to grow. European governments and businesses are increasingly prioritizing investments in local technology infrastructure to safeguard data privacy and enhance cybersecurity.
