In recent years, a growing sense of unease has emerged among European businesses about their reliance on US-based cloud providers, particularly due to the implications of the CLOUD Act. Passed in 2018, this law gives US authorities the power to compel American tech companies to hand over data stored on servers worldwide, including those in Europe. For many companies in the EU and the UK, this has created a lingering fear that their data could be accessed by US law enforcement, regardless of local data protection laws like the GDPR.
This unease has only intensified as political relations between Europe and the United States have soured, particularly since the Trump administration. The shift in tone between the two regions has been palpable, with European companies now more vocal about their desire to establish sovereignty in their tech infrastructure. This sentiment was evident at Gitex, Berlin, where the terms “sovereign” and “private” were prominently featured on banners and promotional materials, signaling a new direction for Europe’s digital future.
A Response to the CLOUD Act and GDPR Conflict
The CLOUD Act’s reach has always been a point of contention for European companies. When US authorities seek access to data involving European citizens or organizations protected by GDPR, a significant legal clash is inevitable. Although no direct legal battles between the CLOUD Act and GDPR have occurred yet, the potential for conflict has led many EU businesses to reconsider their dependence on US cloud services.
The growing reluctance to rely on American platforms is driven by a few key factors: the desire to avoid potential legal issues, concerns over data privacy, and a growing distaste for the political direction of US tech companies. The “shareholder-first” mentality prevalent in Silicon Valley, where user interests often take a backseat, has further fueled this shift in sentiment.
A Call for European Tech Solutions
In 2025, EU companies are increasingly turning to homegrown alternatives to ensure their data remains under European jurisdiction. At the heart of this movement are values of stability, predictability, and trust. European businesses are seeking technology solutions that offer legal clarity and compliance with local laws, distancing themselves from the unpredictability of US governance.
At Gitex, several companies highlighted services designed specifically for European businesses seeking alternatives to US platforms. One such company, Cloud-Network.ai, offered data migration services to help EU organizations move their data away from US-based cloud providers. This reflects a broader trend where smaller European firms, like Ionos and NextCloud, are positioning themselves as viable alternatives to dominant US tech giants, offering services ranging from email hosting to data processing and AI solutions.
Sovereignty in the Cloud: A Growing Trend
Europe’s increasing focus on tech sovereignty is not just a response to legal concerns, but also a reaction to the growing influence of US tech companies. While the technology industry typically prides itself on staying apolitical, the extraordinary events unfolding in the US have had a direct impact on European businesses. As the US’s political landscape continues to evolve, many European companies are questioning the wisdom of entrusting critical data and services to foreign entities that may be subject to external influence.
This shift towards local cloud solutions is not just about avoiding the CLOUD Act. It’s also about reclaiming control over digital infrastructure and fostering a more stable and predictable environment for European businesses. The desire for greater privacy and governance over their data is fueling this demand for sovereign cloud services—an emerging trend that is only expected to grow in the coming years.
Looking Ahead
As Europe faces increasing challenges in the global tech landscape, the desire for sovereignty in data and cloud services is becoming more pronounced. While the CLOUD Act has raised significant concerns, it has also sparked a renewed focus on building European alternatives that offer a safer, more reliable environment for businesses. With the growing influence of local providers, the landscape for cloud services in Europe is poised to shift towards a more independent and self-sustaining model.
In the years ahead, expect to see more European companies embrace these sovereign solutions, ensuring that their data remains within their control and protected from external pressures. As the global tech landscape continues to evolve, Europe’s push for digital sovereignty will likely become a key defining feature of its technological future.
