Rising trade tensions from President Trump’s tariffs along with growing distrust between Washington and Brussels are prompting a push across Europe to reduce reliance on US cloud providers and take greater control of its own digital infrastructure.
Why Tariffs Are Turning Up the Heat
The Trump administration’s new trade measures from the US have targeted core European exports, e.g. cars, steel, aluminium and more, with talk of extending the approach to cover digital services and data regulations. While no direct levies on cloud usage have been announced (yet), the message appears to be that under President Trump, American dominance in critical digital sectors is no longer just a commercial issue but is also a geopolitical weapon.
This perceived risk now appears to be prompting businesses to rethink their infrastructure strategies. Concerns range from the financial (rising service costs from US firms) to the strategic (fear of service disruption or forced data access under US jurisdiction). At the heart of it all is a growing sense that depending on American hyperscalers (i.e. Amazon Web Services ‘AWS’, Microsoft Azure and Google Cloud) may no longer be a neutral or sustainable position.
A Market Still Dominated by the US
Currently, around 70 per cent of Europe’s cloud market is controlled by these three US-based companies. Although that dominance has long been cause for concern in Brussels, the shift in mood post-tariffs has been more dramatic than many expected.
As Benjamin Revcolevschi, CEO of OVHcloud, says: “We’re seeing a fundamental change,” and that “strategic autonomy is now firmly on the agenda for private companies and public institutions alike.”
OVHcloud, a French firm with 43 data centres across four continents, has reported a noticeable uptick in business since the tariffs hit the headlines. The trend is echoed across Europe, with other providers such as Germany’s IONOS, France’s Scaleway, Finland’s UpCloud, and Switzerland’s Exoscale all reporting increased interest from clients looking for alternatives to the American giants.
What European Cloud Providers Are Offering Instead
While European cloud firms can’t yet match the global scale or sprawling services of the US hyperscalers, it seems that they do offer something that’s become highly prized in today’s climate, i.e. control.
For example, European providers guarantee compliance with EU data protection laws like the GDPR, operate entirely under European jurisdiction, and are generally more transparent about data processing and localisation. For many businesses, that kind of reassurance looks like it’s starting to outweigh the convenience of sticking with US incumbents.
For instance, OVHcloud and Scaleway have both leaned into these advantages, offering not only infrastructure-as-a-service (IaaS) but also managed AI platforms, sovereign cloud certifications, and high-performance compute tailored for sensitive industries. As Alexander Samsig of Norwegian consultancy Funktive says, “In 2025, the choice of cloud provider isn’t just about technology or price,” adding that “it’s about values, sovereignty, and risk management.”
This shift in priorities now appears to have put Europe’s smaller providers in a strong position, especially as concerns grow around data access, espionage, and potential US-imposed restrictions on cloud operations.
Security, Compliance and Strategic Risk
Recent high-profile warnings from European governments, including the use of burner phones during US visits by EU officials, have stoked fears that American surveillance or legal overreach could place European corporate data at risk. The EU’s long-standing discomfort with the US CLOUD Act, which allows American authorities to access data stored abroad by US companies, has only added to the pressure.
It seems that these risks are no longer hypothetical. For example, several European IT consultancies and cloud migration firms report that client questions have evolved rapidly from technical performance to compliance guarantees and jurisdictional clarity.
“What we’re hearing from clients now is: where is our data held, who can access it, and what legal systems apply?” said Jonathan Bryce of the Open Infrastructure Foundation. “That’s a different kind of conversation—and a far more strategic one.”
Policy and Investment
Politicians are responding too. For example, France’s AI minister, Clara Chappaz, has called for stricter enforcement of European digital regulations and more ambitious public support for homegrown providers. She’s also taken aim at “sovereignty washing”, i.e. where US tech firms partner with EU companies in appearance only to skirt rules around ownership and control.
To tackle this, France has now introduced the SecNumCloud standard, which bars any cloud provider from certification if it is majority-owned by a non-European parent. The idea behind it is simply that digital sovereignty means local ownership, not just local servers.
That growing political support now appears to be translating into real investment. For example, French telecoms group Iliad recently pledged €3 billion for its AI and cloud infrastructure through subsidiary OpCore. The European Commission is also reviewing public procurement rules to ensure a “European preference” for cloud services in sensitive sectors like healthcare, defence, and AI.
Realistic Challenges Ahead
However, it’s likely that the road to this kind of sovereignty won’t be easy. Analysts estimate that building a fully autonomous European tech stack (encompassing cloud, AI, semiconductors, and connectivity) could cost up to €300 billion by 2035. In fact, some US-based think tanks even put the figure closer to €5 trillion, thereby highlighting the scale of the ambition.
There’s also the technical challenge of migration to consider, i.e. switching away from a US hyperscaler is rarely a quick job. Transitions of this kind can take months or years, particularly for large enterprises with legacy systems deeply integrated into AWS or Azure ecosystems.
That said, for some firms, urgency is forcing the issue, i.e. organisations that feel directly threatened by Trump’s policies may now be looking for immediate solutions, and with every new tariff or combative press conference from the Trump administration, the trickle of interest threatens to become more like a flood.
Knock-On Effects Across the Tech Sector
Cloud isn’t the only area affected. For example, the tariffs have brought fresh attention to Europe’s dependence on US-dominated sectors like fintech, AI, and semiconductors. EU central bankers and tech ministers have renewed calls for sovereign digital payment systems and European alternatives to platforms like Visa, Mastercard, and PayPal.
The regulatory environment is also shifting. Laws like the Digital Markets Act (DMA) and Digital Services Act (DSA) are pushing US Big Tech to play fairer in Europe and, in some cases, to rethink how they operate within the bloc entirely.
This matters for cloud too, as platforms that previously felt invincible are now facing scrutiny not just for competition concerns but for how they align (or fail to align) with Europe’s legal and ethical standards.
What This Means for Business Leaders
For UK and European business leaders, all of this seems to indicate that this is a decisive moment. Cloud services can no longer be treated as neutral utilities, they’re now seen as potential sources of risk or leverage in an increasingly divided world. The takeaway is that it may be time to diversify, not necessarily by abandoning US providers overnight, but by ensuring contingency plans are in place, reviewing data locality and control, and evaluating EU-based providers not just on cost, but on strategic value.
As Mark Boost of UK cloud provider Civo put it: “A sovereign European cloud could foster an ecosystem defined by fairness and transparency, where customers can choose freely—and safely.”
The tech world may not have changed overnight but it seems, thanks to Trump’s tariffs, Europe’s digital awakening just got a powerful new push.
What Does This Mean For Your Business?
For now, the big three US cloud providers still dominate Europe’s digital infrastructure but it feels like the balance of power may be starting to shift. What began as a trade dispute over steel and cars is now exposing deeper vulnerabilities in Europe’s technological foundations, and sparking long-overdue conversations about control, security, and resilience.
European cloud providers, while still dwarfed in size, are now gaining some traction by offering something their American rivals can’t, i.e. jurisdictional certainty, local accountability, and alignment with EU values. These things now appear to have more value than ever in an era where international politics can affect whether a company’s data stays accessible, or its digital operations stay online.
Although change now seems to be afoot, it won’t happen overnight. This is because moving away from hyperscalers is complex and costly. That said, the trajectory is becoming clearer. With rising public investment, tighter regulatory frameworks, and real business demand, Europe may now be starting to sketch out an alternative vision for its digital future, one less dependent on any single foreign power.
In the UK, firms operating in regulated sectors (or with sensitive client data) may now need to reassess their risk exposure and future-proof their cloud strategies. Diversifying providers, strengthening data governance, and exploring EU-based platforms could all become part of a more resilient digital toolkit. For IT leaders, procurement teams, and strategic planners, the question may no longer be if this matters, but how quickly they can adapt.
Also, for policymakers, investors, and the wider tech ecosystem, Trump’s tariffs may have done what years of white papers could not, which is to force Europe to confront its overreliance on foreign tech infrastructure and start building a competitive, sovereign alternative. If that momentum holds, it may not just reshape the cloud market but could also redefine the digital landscape across Europe.
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