Strategic Shift Driven by Geopolitics
European companies are reassessing their dependence on major U.S. cloud providers as global trade tensions and the “AI arms race” place unprecedented emphasis on data sovereignty and digital autonomy. Benjamin Revcolevschi, CEO of leading European cloud provider OVHcloud, noted that recent economic and political developments have elevated the choice of cloud provider from a purely technical decision to a vital strategic one for both private companies and public organizations in Europe[3].
"In the current geopolitical context, we are seeing a shift in the concerns of private companies and public organisations in Europe. Questions of strategic autonomy are now on CEOs' agendas. The choice of a cloud provider is no longer just a technical matter, but also a strategic issue," Revcolevschi stated.
Global AI Race and Cloud Market Dynamics
Data centers and cloud computing infrastructure are now crucial building blocks for companies involved in training and operating advanced AI models. The cloud market in Europe is currently dominated by three U.S.-based hyperscalers: Amazon Web Services, Microsoft Azure, and Google Cloud. However, the rapidly escalating trade war has triggered concerns in Europe about overreliance on American technology platforms and exposure to foreign regulations[3][2].
Investment in Local Alternatives: OVHcloud and OpCore Step Up
As companies look to reinforce their digital independence, European providers are ramping up investments:
- OVHcloud, which operates 43 data centers globally, continues to expand its multi-cloud and sovereign cloud offerings, catering to organizations seeking enhanced data locality, security, and compliance[5][10].
- Iliad’s OpCore division (OVHcloud’s main competitor) recently announced a €3 billion ($3.4 billion) commitment to AI infrastructure, with a focus on boosting computing power and data center capacity across Europe[3].
Data Sovereignty and Compliance — A Competitive Edge
European cloud providers like OVHcloud, Scaleway, Hetzner, and Open Telekom Cloud are positioning themselves as the go-to choices for organizations requiring not only resilience and performance but also an assurance of independence from non-European jurisdictions[2]. This is especially pertinent given concerns around foreign surveillance laws such as the U.S. CLOUD Act, which grants broad access to data stored by U.S. companies even if the data resides in Europe[2].
What’s Next for Europe’s Cloud Sector?
The twin announcements by OVHcloud’s CEO and Iliad signal a broader movement among European firms seeking to reduce dependence on U.S. digital solutions. This trend is expected to influence strategic decisions across the continent, driving further investment in local cloud infrastructure and innovation.
Key Takeaways for European Businesses
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Companies are now treating the choice of a cloud provider as a strategic priority to safeguard operational autonomy and ensure compliance with local data protection regulations.
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The focus is not just on technical capability but also on sovereignty, flexibility, and the ability to respond rapidly to evolving geopolitical risks.
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Ongoing investment by European providers suggests more robust and independent cloud alternatives are on the way, set to reshape the region’s cloud landscape.
Further Reading: What Is at Stake?
At stake is Europe’s ability to maintain technological leadership and control over its critical digital infrastructure as artificial intelligence and data-driven applications become integral to business and society. The choices made by companies in the coming years will impact not only their own security and agility, but also the broader strategic posture of Europe in the digital era[3][2].
