EU cloud providers see surge in interest amid geopolitical and trust concerns

European cloud providers are reporting a significant uptick in customer interest as businesses across the region reevaluate their reliance on US hyperscalers in light of rising geopolitical uncertainty and growing concerns over digital sovereignty.

At KubeCon EU this April, industry chatter shifted from AI to anxiety. Specifically, there was unease over recent US policy volatility, privacy concerns, and trade tensions. For companies relying on US-based infrastructure giants like Amazon Web Services, Microsoft Azure, and Google Cloud, the question of “who controls our data?” is becoming harder to ignore.

"It's amazing how fast the change has been," said Mark Boost, CEO of UK-based cloud provider CIVO. A longtime advocate for digital sovereignty, Boost said the surge in inquiries from businesses looking to diversify away from US providers even caught him off guard.

Germany’s Nextcloud is seeing similar momentum. CEO Frank Karlitschek attributed the increased demand to what he calls “a perfect storm” of American unpredictability, economic weaponization, and fears of surveillance.

“There are three main drivers,” he said. “Unreliability—where things could be switched off overnight due to politics. Pricing—tariffs and trade disputes impacting cost stability. And espionage—real concerns about access to confidential data.”

Those concerns might’ve sounded far-fetched a year ago, but today they’re being echoed in boardrooms across Europe. Reports of EU officials being issued burner phones for U.S. visits and fears over executive orders targeting foreign technology suppliers have put pressure on businesses to assess their risk exposure.

According to Karlitschek, interest in Nextcloud has tripled in recent months. While many organizations are still taking a cautious, phased approach to migration, some—especially those feeling vulnerable to U.S. policy shifts—are pushing for accelerated exits from American platforms.

A market moment for sovereignty

Even American-based providers with international operations are noticing the shift. Vultr, which runs global data centers, has seen more customers inquire about sovereign cloud infrastructure. Its CMO, Kevin Cochrane, said enterprises are questioning not just where their data resides, but who ultimately controls it.

“There’s a growing realization that a small oligopoly - AWS, Microsoft, Google - has a stranglehold on critical infrastructure,” he said. “And that’s creating strategic risk.”

According to Cochrane, the concern predates the current tariff standoff, but it’s only intensified as customers grapple with regulatory, political, and commercial uncertainties.

Jonathan Bryce, CEO of the Open Infrastructure Foundation, sees a clear acceleration in momentum. “People are asking, ‘Where is my data? Who has access to it? Could it be subpoenaed or even cut off?” he said. “There’s a real movement building around that.”

Bryce compared the shift to the aftershocks of Broadcom’s 2023 acquisition of VMware, which prompted a wave of customers to seek alternative providers after licensing costs spiked. A similar reckoning may now be playing out in cloud infrastructure.

Still a long road ahead

Despite the rising interest, European providers face an uphill battle. The Big Three hyperscalers still hold roughly 70% of the continent’s cloud market share, according to industry analysts. Migrating from their platforms can be complex, costly, and time-consuming.

Even so, Boost sees real potential. “There’s still a long way to go before hyperscalers can claim there’s no monopoly,” he said. “But what we’re seeing now is that people are finally ready to talk—and to act.”