May 26, 2025

Is European cloud sovereignty at an inflection point?

Europe is leading the charge in the move toward cloud sovereignty, as 72 percent of European businesses now prioritise data sovereignty when selecting technology vendors. This shift is largely fuelled by increasing awareness around the need for stringent data security and integrity within the region’s borders.

Yet, despite this momentum, US hyperscalers continue to dominate the European cloud market. Vendors such as Oracle and AWS are expanding their European ‘sovereignty’ offerings, but these solutions fall short of delivering “true” sovereignty. As long as control remains in the hands of dominant hyperscalers, what’s being offered will only be an illusion of sovereignty.

Growing concerns over this struggle for sovereignty, compliance, and overall hyperscaler dominance are becoming increasingly evident. Microsoft’s introduction of the EU Data Boundary and CISPE’s shift toward a fully European governance structure highlight the shifting cloud landscape. Amid these market developments, it’s clear that increasing pressure from regulators and geopolitical uncertainty will continue to influence cloud strategies across Europe. But, are these developments reflective of a true inflection point, or are we at the early stages of a larger transformation journey?

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