European cloud providers unite behind EU plan to curb US tech dependence

European Cloud Providers Back EU Push to Reduce US Tech Reliance

Thirteen European cloud service providers joined forces with EU lawmakers and non-governmental organizations on Monday to endorse the European Commission’s initiative to reduce the bloc’s dependence on American technology and promote local enterprises, according to Reuters.usnews

The coalition’s announcement comes just days before the Commission is scheduled to unveil its Tech Sovereignty Package on Wednesday, June 3, a sweeping policy framework that would ensure European firms — rather than their US counterparts — deliver cloud services for sensitive government contracts.euperspectives

A Sovereignty Push Years in the Making

The coalition’s formation reflects growing urgency in Brussels over Europe’s digital vulnerability. US hyperscalers Amazon Web Services, Microsoft Azure, and Google Cloud control roughly 70 percent of the EU’s cloud infrastructure market, while European providers account for approximately 13 percent.linkedin

The Tech Sovereignty Package is expected to include the Cloud and AI Development Act, which will formally define “sovereign cloud” and establish tiered sovereignty levels for public-sector data based on sensitivity. It will also include a revamped Chips Act 2.0 aimed at strengthening Europe’s semiconductor ecosystem.ngi

Under the proposals, governments handling highly sensitive information in sectors such as healthcare, finance, and judicial systems could be required to use European-controlled cloud infrastructure. The restrictions would apply only to public-sector bodies, not private companies.tekedia

Geopolitics Driving Policy

The initiative is driven in part by concerns over the US CLOUD Act, which allows American authorities to compel US-headquartered companies to hand over data regardless of where it is stored. Officials have framed the discussion around the risk that a foreign government could disrupt access to critical digital infrastructure.gitlab

“The core idea is defining sectors that have to be hosted on European cloud capacity,” one European Commission official told CNBC ahead of the package’s release.cnbc

Structural Challenges Remain

Despite political momentum, analysts have cautioned that a complete shift away from US providers remains unrealistic in the near term. Forrester predicted that no European company would fully decouple from US hyperscalers by 2026 due to economic constraints. The Commission itself has stressed that the package “remains grounded in openness, partnership, and fair competition” and does not amount to protectionism.cio

The Atlantic Council noted that the draft legislation contains no explicit “Buy European” requirement but relies on risk-based criteria and certification standards that structurally favor EU-compliant offerings — amounting to a “de facto ‘Buy European by design’ approach”.radiobruxelleslibera