Digital Event Horizon
The European Exodus: A Shift Away from US Cloud Providers Sparks Concerns About Data Security and Independence
European companies and governments are reevaluating their reliance on American cloud providers, driven by concerns about data security, independence, and sovereignty. As the Trump administration continues to face global criticism, the exodus of companies like Exoscale and Elastx towards European alternatives raises questions about the future of transatlantic data-sharing agreements.
European companies and governments are reevaluating their reliance on American cloud providers due to concerns about data security, independence, and sovereignty. Companies like Exoscale and Elastx are seeing an uptick in demand from across Europe as a result of the shift. The uncertainty surrounding US policies and the recent firing of Democrats from the PCLOB have contributed to the sense of insecurity among European companies. Countries like Denmark are explicitly asking customers to move away from US hyperscalers due to concerns about US administration policies. The CLOUD Act has created concerns among firms about being subpoenaed for user data, potentially stored outside of the US. Some entrepreneurs argue that it is no longer "safe" for European governments to be moved to US clouds, and a Europe-first approach could help stimulate wider moves on the continent. The European Parliament has passed motions asking the government to reduce reliance on US tech companies and move to European alternatives.
The winds of change are blowing across the continent, as European companies and governments begin to reevaluate their reliance on American cloud providers. The move is not just a passing trend, but rather a deliberate shift towards greater data security, independence, and sovereignty. As the second Donald Trump administration continues to face global criticism, the concerns about US tech services have reached a fever pitch.
At the forefront of this exodus are companies like Exoscale and Elastx, two European-based cloud service providers that have seen an uptick in demand from across the continent. According to Mathias Nöbauer, CEO of Swiss-based hosting provider Exoscale, "We have more demand from across Europe," he says. "Some customers were very explicit," Nöbauer adds. "Especially customers from Denmark being very explicit that they want to move away from US hyperscalers because of the US administration and what they said about Greenland." This sentiment is not unique to Exoscale, as Joakim Öhman, CEO of Swedish cloud provider Elastx, echoes similar concerns. "Those are the drivers that bring people or organizations to look at alternatives," Öhman says.
The reasons behind this shift are multifaceted and far-reaching. For one, the uncertainty surrounding the Trump administration's policies has created an environment of unease among European companies. The recent firing of three Democrats from the Privacy and Civil Liberties Oversight Board (PCLOB), which helps manage the current data-sharing agreement between the EU and US, has added to the sense of insecurity. Furthermore, concerns about the CLOUD Act, which can allow US law enforcement to subpoena user data from tech companies, potentially including data that is stored in systems outside of the US, have created a sense of unease among firms.
Bert Hubert, an entrepreneur and former government regulator, argues that it is no longer "safe" for European governments to be moved to US clouds. "We sell a lot of fine wood here in Europe," he says. "But not that much furniture." However, the landscape is changing, and new investments, a different approach to buying public services, and a Europe-first approach or investing in a European technology stack could help stimulate any wider moves on the continent.
Marietje Schaake, a nonresident fellow at Stanford's Cyber Policy Center and a former decadelong member of the European Parliament, notes that "there's a huge appetite in Europe to de-risk or decouple the over-dependence on US tech companies, because there is a concern that they could be weaponized against European interests." The moves may already be underway, as politicians in the Netherlands House of Representatives passed eight motions asking the government to reduce reliance on US tech companies and move to European alternatives.
Dave Cottlehuber, founder of SkunkWerks, a small tech infrastructure firm in Austria, has been moving his company's few servers and databases away from US providers to European services since the start of the year. "First and foremost, it's about values," Cottlehuber says. "For me, privacy is a right not a privilege." The decision to move is easier for a small business like Cottlehuber's, but he argues that it removes some taxes that are paid to the Trump administration.
As the European exodus from US cloud providers gains momentum, concerns about data security and independence will only continue to grow. The fate of transatlantic data-sharing agreements hangs in the balance, and the implications for global businesses will be far-reaching. Will Europe succeed in its quest for greater control over its digital destiny? Only time will tell.
Related Information:
https://www.digitaleventhorizon.com/articles/The-European-Exodus-A-Shift-Away-from-US-Cloud-Providers-Sparks-Concerns-About-Data-Security-and-Independence-deh.shtml
https://arstechnica.com/information-technology/2025/03/europe-is-looking-for-alternatives-to-us-cloud-providers/
https://news-pravda.com/world/2025/03/24/1173118.html
Published: Tue Mar 25 09:44:56 2025 by llama3.2 3B Q4_K_M
