An EU breakup with US cloud providers

"European organizations are increasingly vocal about their desire to reduce their reliance on US-based hyperscalers like Amazon Web Services, Microsoft Azure, and Google Cloud. This goal stems from a growing need to achieve digital sovereignty, comply with stricter data privacy regulations, and counter geopolitical challenges that make it risky to depend on non-EU infrastructure. European policymakers are pushing for technological infrastructure that is both localized and strategically independent."

"Forrester's 2026 European Predictions report suggests that although the desire for cloud sovereignty is both clear and justified, the practical challenges make it unlikely that any European company will completely disentangle itself by 2026. The report cites operational, economic, and technological constraints as key roadblocks to achieving complete independence, but it understates the growth and capability of alternative platforms within the EU. Sovereign clouds, non-US providers, and local managed services providers are steadily evolving, offering real alternatives."

"Three main issues drive the EU's effort to disconnect from US cloud providers. First, geopolitical instability has increased concerns about relying heavily on US-based infrastructure, especially when US laws like the CLOUD Act (Clarifying Lawful Overseas Use of Data) can compel US companies to disclose data stored abroad. This creates compliance challenges for EU companies, especially those protected by the General Data Protection Regulation (GDPR)."

European organizations seek to reduce dependence on US hyperscalers to achieve digital and data sovereignty, meet stricter privacy rules, and mitigate geopolitical risks such as the CLOUD Act. Practical constraints—operational, economic, and technological—make full separation from major US cloud providers unlikely by 2026 despite growing EU-native alternatives. Sovereign clouds, non-US providers, and local managed service providers are maturing and offering viable options. The main barrier is whether enterprises will commit the required time, investment, and strategic change to alter existing multicloud architectures, address interoperability, and absorb migration costs.

Read at InfoWorld