Euro firms must ditch Uncle Sam's clouds and go EU-native

by jamesblondeon 1/31/2026, 10:34 AMwith 697 comments

by kiokuon 1/31/2026, 12:13 PM

> This isn't just compliance theater; it's a straight‑up national economic security play.

The woes of LLM contrasts…

In all seriousness, the points made ring true not only for European companies and should make everyone consider the implications of the current situation, as dreary as they are.

by 202508042147on 1/31/2026, 12:24 PM

Last week I migrated our db away from AWS RDS to a European cloud provider. Everything runs fine and we also have it cheaper!

One of our domains is due for renewal in a couple of months. I'm setting up the transfer to a EU registrar for it next week.

This all takes time and it's not the most important thing for the bottom line, but on the long run I'm sure I'll look back and say it was a great investment.

by 202508042147on 1/31/2026, 12:18 PM

As a European, I am glad that this is finally discussed in the open! I have made multiple comments in the last weeks that one of the most important things, for me, is an alternative to the Visa/Mastercard duopoly. And yes, I can use an app to pay, but whenever I rent a car or purchase something online, I still use one of these two American companies. Why isn't the European Commission mandating these app payments in different EU countries to connect with each other? Wouldn't that go faster than the digital euro, that is set to come no earlier than 2029?

by ExoticPearTreeon 1/31/2026, 1:17 PM

I like it how everyone says that, but there is no european cloud operator able to offer what AWS/GCP/Azure offer. And if you are a start-up and you want to grow, the situation is even more dire.

And without a few hundreds of billions of EUR invested _today_ there will still be at least a decade until basic infrastructure will be somewhat on par with current day hyperscalers from the US.

And Office suite wise, it took Google about 15 years of pouring money into Google Docs to be almost as good as the MS offering.

Today, if for political reasons some EU companies will switch to whatever Europe has to offer in terms of cloud computing, they will need to spend a significant amount of money to retool their day to day pipelines and invest into developing or replacing cloud services with alternatives from the new provider or self-host if there is no native offering.

There’s a chance that the current situation will start to resolve itself in 3 years and we go back to normal, however that might look.

by adrianNon 1/31/2026, 11:33 AM

I kind of share the opinion of the FSF Europe that it is less important where software comes from compared to whether it’s libre, but for cloud hardware I really hope that we manage to create competitive European offerings. Maybe we’re lucky and this European initiative will produce more than five Fraunhofer institutes and a gift to SAP.

by abc123abc123on 1/31/2026, 11:59 AM

This already happened. Hetzner, OVH, and countless other local cloud companies exist. It is only the path of least resistancd and market inertia, that stops companies from switching.

I run on Hetzner and am saving big bucks compared to the ridiculously high priced AWS.

by ArtTimeInvestoron 1/31/2026, 12:15 PM

Can Europe build AI datacenters though?

Europe has no wafer production and no companies that produce GPUs.

That means it is dependent on Taiwan for wafers and the USA for GPU design.

Then there is the question wether there is a will to invest. Gemini gives me this list of publicly traded companies in the US and what they invested in AI infrastructure in 2025:

    Amazon: $100B
    Alphabet: $90B
    Microsoft: $80B
    Meta: $70B
    Tesla: $20B
For Europe, I get this list:

    Deutsche Telekom: $1B

by nullsanityon 1/31/2026, 12:05 PM

I think reductionist opinions about the "Free market" and price competition being the only factor are naive. Culture and trust are major components of a project, and cultural sensibilities and development culture can be a part of procurement decisions.

I worked for a company that chose Tresorit over any other option because it gave them Data Sovereignty, E2E encryption, and most important, it was not American.

There is intrinsic value in being "Not made in America" and data sovereignty is a major issue for a lot of organizations. Just as an American company would be concerned about storing their data in China, the rest of the world is/should be concerned about storing their data in the US.

by Gimpeion 1/31/2026, 4:28 PM

Isn’t the more fundamental question why Europe has not been as successful as the US or China in building a native tech industry despite having a huge market? What are the barriers to creating startups and how can you lower them and preserve the enviable European social model? Solve that and you’ll solve the problem of a native cloud.

by mark_l_watsonon 1/31/2026, 1:29 PM

That was a good article, I don’t usually read The Register.

Even as a US citizen, I say: good for Europe!

The world is simply a better place when countries have independence and can be as self reliant as possible.

In the US media there is an ongoing rhetoric that everything in the US is wonderful and everything in the rest of the world is much worse. I am privileged to have travelled widely so I know what a mostly wonderful and friendly world we live in.

I just use a few EU tech products (Hetzner, Proton, Mistral) but they seem good enough to me.

by barnacson 1/31/2026, 12:08 PM

As if the surveillance and regulation by the unelected EU bureaucrats was any better for the European citizens...

by zmmmmmon 1/31/2026, 8:22 PM

It's not practical IMHO to move out of US owned cloud companies at this point in time. It could become so over years.

However what is mostly practical is to avoid building on their proprietary layers and stick to relatively portable tech. Just treat it like highly flexible servers / generic services provisioned through APIs. It's a battle to stop "cloud experts" from cargo culting "best practices" which invariably involve everything they can find at the extreme end of the proprietary stack.

by gregman1on 1/31/2026, 12:50 PM

I’d start with govs. Governments are mostly running Microsoft. Like your and your friends and family’s health, tax, ownership, pension and other data.

by zkmonon 1/31/2026, 6:27 PM

A story I read goes thus: A nicely dressed young man was waiting at a bus stop in a rural part of India. He need go to a nearby city. Suddenly clouds gathered and it started to pour down heavily. He took shelter in a chai (tea) shed beside the bus stop. The chaiwala (tea shop owner) announced that the bus is cancelled for the day as road was damaged due to the heavy rain. The young man looked worried and tried to go by walk in the rain. Chaiwala warned that rain would get only heavier. Young man returned and sat back. Other people ordered more chai. Due to more demand for chai, the chai jar (tea granules) got empty. Chaiwala commanded the worker boy to run to a shop that is half-mile away and get more chai packs. The boy sprinted out as if there was no rain. He came back in half hour, fully soaked, starry-eyed, with tea packs in his hand. Young man gets up and starts walking out. Chaiwala was shouting that winds and rain are going to persist the whole day. Young man didn't listen, and didn't feel the rain.

by debugnikon 1/31/2026, 12:12 PM

> 61 percent of European CIOs and tech leaders say they want to increase their use of local cloud providers.

Oof, the company I work for is proudly telling us we've just migrated from a local provider to Azure, and partnered with Google for "digital sovereignty" solutions. Glad to know that's not the trend everywhere.

by csantinion 1/31/2026, 2:37 PM

Aws Gcp Azure have overbuilt, you don't need most of those services to build scalable and reliable infra for large institutions

by cmengeon 1/31/2026, 5:14 PM

1. Europe doesn't have comparable offerings. The amount of money invested is below what a single hyperscaler spends per quarter. (StackIT might be on track to change that looking at the pure numbers)

2. European politicians still seem to believe it's about renting compute and storage; they seem to have little understanding of what "a cloud offering" really is; the EU has less than 5% of GPUs, supposedly

3. For healthcare, they already forced you years ago. This led to hosting on Telekom Cloud which runs on OpenStack by Huawei. (EU commision wants to ban Huawei from 5G but it's ok to use their software? 'Is open source and can be inspected' seems largely theoretical given the reality of cybersecurity)

4. If push comes to shove, the EU is critically dependent on the US in so many aspects (defense, lng to name two very important ones) that eventually, they would falter if the US wants your data in a specific case anyway

5. As a private citizen, given the incarcerations in the UK and Germany, it seems one should worry more about the EU getting your data than the other way around

That said, would be nice to have healthy competition, but after hearing this for 10++ years, it's getting really old. It might have been a good idea not to sleep on the AI trend, but, well...

by iLoveOncallon 1/31/2026, 11:52 AM

Europe will never have competitive offerings until they pay their employees the equivalent of what FAANGs pay.

If you work for GCP or AWS in Europe, you'll easily get twice as much income as if you do the exact same job for Hetzner or OVH.

You can't build equivalents to GCP and AWS without paying the same. I work for a FAANG right now in Europe and I wouldn't consider even a single second any European cloud provider as potential employers.

by aenison 1/31/2026, 1:47 PM

I am in the middle of this - my audit committee just told me we need an exit plan "just in case".

I don't think this is practically possible. The governments are currently focusing on enabling sovereign clouds - there is real work in France and the Netherlands that I am familiar with.

However, almost any company uses a lot of SaaS stuff - also for very core capabilities such as IdP, employee productivity, not to mention the boring stuff - CRMs, ERPs, payment, etc.

Some (all, maybe?) have non-US variants, but as anyone who ever worked through an ERP upgrade or a CRM replacement - theoretically trivial exercises - this will be hell on earth.

And that does not begin to address the questions such as next gen productivity tools such as frontier models for coding. If Anthropic, Google and OpenAI decided to shut down the Europeans, we'd be screwed for a while.

On the positive side, the absolute toxic stuff that tech companies brought to the world - shorts, social media networks - would for a while be inaccessible too, so there is that.

by pteroon 1/31/2026, 12:53 PM

A much better goal would be to ditch dependence on a single company and become, as much as possible, cloud provider agnostic. Not that I mind giving US big tech grief -- they earned it in spades.

But if you wrestle your technology chains from one evil master, do not willingly give it to another, even if he looks more benevolent today. My 2c.

by oellegaardon 1/31/2026, 12:59 PM

We recently moved two companies from AWS to Scaleway which is the closest to AWS you find in EU AFAIK. It's like AWS 5-10 years ago, eg much fewer managed services and you don't have as much tooling, but it works great and it is also cheaper. You do get managed kubernetes, Postgres and Redis plug and play though.

by AtlasBarfedon 1/31/2026, 2:25 PM

States need to sponsor open source to the tune of tens of billions.

Ss the reg points out it's now national security in a deglobalization world.

I got mocked on this site for suggesting it.

But both the EU and the non aligned superpowers need open source hardware and software stacks.

It's all there already. The people did 90% of the work. Llms are here to close feature gaps, identify security issues, port code. They are great at cloning and iterative improvement.

You don't need some radical new idea. And stand up to American companies

And oh jeez, you might get a functioning tech sector of companies. That would be horrible wouldn't it EU.

Proprietary software and hardware/firmware is a weapon these days. This is a US issue as well.

Open source is the key for the entire economic stack of fabrication of computing devices in a weaponized low trust deglobalized multipolar world.

It enabled cooperation, export, multinational companies to make money worldwide

by albert_eon 1/31/2026, 1:18 PM

AWS seems to have seen the writing on the wall and has already launched a European Soverign Cloud -- a separate partition like they have for GovCloud and China.

I am guessing other hyperscalers must be doing the same?

Are we seeing a strong aversion among EU companies to use these offerings from US firms (AWS, Google, Microsoft) and viable competition emerging from Europe?

The selling point of many offerings from current market leaders is that they have the widest array of services especially easy to expand into say datalake, BI or AI/ML experiments and production workloads starting from a core IaaS only setup one might have after migrating off own datacenter. I wonder if there are lesser known players positioning themselves in this space -- with managed services in platform/application space. Curious to know some examples.

by niemandhieron 1/31/2026, 12:33 PM

For most medium sized business or government agencies, the main reason for cloud providers is that you don’t need the in-house skill.

You can replicate most of their offerings for that target group with open source stuff easy enough, but you will need people to maintain that and those are more expensive.

by hunglee2on 1/31/2026, 12:32 PM

The time for Great Firewall of Europe was 2005, when Friendster, Skype, Xing were still a thing. Probably too late now but effort still needs to be made. One upside of a sovereign European Internet is an ecosystem which may sustain thousands of well paying jobs

by rm30on 1/31/2026, 9:56 PM

I've carefully read this interesting discussion: some political, mostly about full cloud services (AWS) vs partial EU providers, or lock-in vs indipendence.

I think the problem is elsewhere. The real advantage of big cloud players isn't their individual services. It's seamless integration and simplicity. We need a service integration standard for infrastructure that enables:

- Service discovery

- Networking

- Observability

- Configuration

This benefits everyone: EU companies, US startups, enterprises anywhere avoiding vendor lock-in. A standard letting services integrate regardless of who provides them.

Not just container orchestration (Kubernetes), but something working across bare metal, VPS, containers, and remote machines.

by constantcryingon 1/31/2026, 5:10 PM

Many European companies are already struggling financially, especially the large traditional businesses which form the backbone of the European economy at large.

Now you demand that these companies should rip out decades of the IT systems they have built up, which form the backbone of their day to day operations and replace them with third rate alternatives, nowhere near in capability, support and coverage?

Yes, I love open source and I wish to see it succeed, but this proposal is suicidal. Even if a superior and less costly alternative did exist (and it does not, just to be clear), just the effort of switching over would ruin these companies.

by BSDobelixon 1/31/2026, 12:27 PM

It's called the Cloud Act. If your business wants to keep its production secrets and personal data safe, think again. This has nothing to do with Trump.

Don't fall for the trick of using an AWS EU sovereignty cloud. Amazon is US-based and falls under the Cloud Act. Don't be tricked.

by kkfxon 1/31/2026, 3:30 PM

As an European, I see no point in swapping one dictator for another, or one IT giant for another. What we need is to mandate FLOSS, push for an interconnected Desktop model rather than cloud+mobile, force ISPs to adopt IPv6 with a static global per host, and incentivize domain name purchases while promoting affordable home servers and declarative solutions that are accessible enough to most people so they can deploy their own services independently.

It makes no sense whatsoever to switch from Company A to Company B, you're still just a customer at the vendor's mercy.

by fnoefon 1/31/2026, 5:32 PM

I keep seeing over and over how Europe should be self sufficient. I’d be happy for Europe to be self sufficient.

But the truth is that Europe does not have the infrastructure and offering to be self sufficient. Even looking at basic things like AWS SES, there is no European offering. Apart from scaleway, there are no competitions for big cloud providers. There are no alternative to office suites.

And I’m not even talking about hardware. What’s the point to build data centers if they run US made hardware.

So, as the saying goes: talk is cheap, show me the software.

by epolanskion 1/31/2026, 8:07 PM

Most of my European clients fall in two categories:

1. Ain't nobody got time/care to move out of AWS/azure but we can consider alternatives on new stuff.

2. We moving all to European cloud vendors and gonna mail them to ditch US hardware as well.

The first group is bigger than the second.

One wish to say trump has done damage, but he was voted and he's doing exactly what he said he would do so it's hard to treat this as "it's just trump", it's not, it's Americans treating others like enemies.

by lucasRWon 1/31/2026, 1:03 PM

Why EU-native rather than nation-native ? If you are French, your sensitive stuff must be French-native, just like Switzerland does, not "EU-native whatever that means".

There is no EU, each country has very strong different interests, on some topics, some will decide to stay close to the US, on some other topics, some will seek proximity with the BRICS, etc, etc. Constantly being in an in-between is what has destroyed Europe.

by antirezon 1/31/2026, 12:30 PM

To really understand how complicated is this matter, put into the mix that before AI in Europe there was no shortage of knowledge to have all our cloud services (to the point that a decent part of key infrastructure software is developed in Europe or mainly by Europeans), social networks, ..., but yet it was never strongly wanted. To reach this point, something is really odd with the current US-EU tensions.

by retinaroson 1/31/2026, 12:50 PM

europe is doing well enough to hinders freedom. we don't need america for that. just at the moment in france they voted law to restrict social media from teenagers. that will require ID for loging onto websites. one can already guess whats the next step. the minister in charge of this already mentionned trying to ban VPN like in north korea.

European governements WILL take your data from "sovereign" clouds

by andersaon 1/31/2026, 11:45 AM

This will happen automatically once an EU native cloud exists with comparable pricing. Get on it. No one will pay 10x to store data in Europe.

by tj-teejon 1/31/2026, 7:08 PM

After Snowden's leaks don't we know the levels of spying that's already happening today? That was a decade ago, what has changed?

by znnajdlaon 1/31/2026, 2:19 PM

This is not just a sovereignty/security/privacy issue. I genuinely believe that ditching Big Tech will produce genuinely better technology for consumers. Once the monopolists lose their network effect advantage, startups should be forced to adopt more interoperable protocols and foster healthier competition. Big Tech is a cancer, same as any other monopoly.

by willtemperleyon 1/31/2026, 11:51 AM

This poses a fundamental problem for many SaaS providers. How can you guarantee client data aren't sent across the pond when all the app state is held server-side?

The answer is obvious with native apps, where it's standard practice to provide server endpoint details, so client-verified data locality is simple.

I don't really know how this is practically possible in SaaS web apps.

by christkvon 1/31/2026, 3:18 PM

There are certain things that would be a pain to do as the platforms we use gives us so much more than just hosting. It means a lot more operational work in our case and loss of certain functionality that has to be reimplemented using some other stack. I don't see it as feasible in the short term, nor cost effective.

by sunshine-oon 1/31/2026, 12:14 PM

If Europe wants to reach digital independence it really has to look at thew big picture.

1. European banks mostly sell debt and Nasdaq/Magnificent 7 stocks to their clients. This is what EU citizen invest in.

2. Data centers run on semiconductors made in Asia and cheap energy. Software is almost "the easy part".

3. The whole migration to "the Cloud" (aka MS/AWS/Google), CAPEX to OPEX transition during the ZIRP era was a scam sold by the same ruling class that now tell you need to revert to the previous model.

4. Human capital has to be considered. Having big consulting shops making banks on exploiting foreigners is not a sustainable path to build digital independence (see the content of the recent trade deal with India, an US and Russia ally).

by hsuduebc2on 1/31/2026, 1:02 PM

If China can and will do it, it is naive to assume other superpowers with their own interests, especially when they have convenient access to your data, would not do the same. More likely in country when business is so tightly interconnected with politics.

by deadbabeon 1/31/2026, 2:45 PM

This is a pipe dream.

Also, Europe loves to impose its draconian internet laws on the rest of the world, if mutual respect for sovereignty is what they want, then they can now learn to accept the constraints of another nation’s cloud environment. Sucks doesn’t it?

by carlosjobimon 1/31/2026, 12:17 PM

I see this differently.

For European citizens and companies the safest option will always be to have their data in the USA or anywhere where European rulers cannot touch it.

The same for Americans, their data should be safest far away from their government.

by dev_l1x_beon 1/31/2026, 5:10 PM

Can’t wait until any European vendor gets 400 POPs around the globe with tier1 backbone and the same time has an API, can issue top tier certificates and has some of the features that for example Cloudfront has.

by madhackeron 1/31/2026, 8:12 PM

Good for the EU. This a a much needed wake-up call for data sovereignty.

by bell-coton 1/31/2026, 11:34 AM

Yes, nice, true.

But sadly, it feels like pigs will be singing Handel's Messiah before Europe's leaders get off their fat asses and actually do anything about their problems.

by hopppon 1/31/2026, 10:00 PM

I really hope so.

I am working on a high availability postgres self-hosting solution that works with hetzner ,just for the Eu market. Fingers crossed, lots of work ahead.

by drivingmenutson 1/31/2026, 2:14 PM

Will they also need to separate from the banking systems? As I understand it, almost every banking transaction goes through a US-based network.

by jonplacketton 1/31/2026, 1:29 PM

Even if we get the data and an EU cloud we still need chips, operating system, devices.

Unless we’re all going to use. Raspberry Pi I’m not sure how this works.

by siliconc0won 1/31/2026, 2:53 PM

American cloud companies will sell you a sovereign cloud solution but these are still pretty much make you a vassal state

by ta9000on 1/31/2026, 6:43 PM

Americans are absolutely not a fan of this administration and it will be severely neutered after the midterms. The Supreme Court is already doing some of that.

Americans are not your enemy, Washington (state), California, Illinois, etc (AKA the states with real economic power and all the tech companies) did not vote for this. We still believe in the rule of law and our friendships with our allies.

by fnord77on 1/31/2026, 3:16 PM

I guess those million dollar bribes to the president's inauguration party were wasted

by lencastreon 1/31/2026, 3:19 PM

what a strange game of chicken, why xan’t amzn, msft, et al just contain their infra within euro borders and call it a day? after all the word multi in multinational does not oblige companies to stop selling in Europe, or?

by abdelhousnion 1/31/2026, 1:31 PM

First, Europeans must change their mindset and be really willing to become free.

by vascoon 1/31/2026, 12:59 PM

And move to the Lidl cloud?

by stainablesteelon 1/31/2026, 3:39 PM

incompetent people, making decisions they should have made a decade ago, that will take more than a decade to implement, and will by then probably be just as outdated as this decision is now

by chaostheoryon 1/31/2026, 2:57 PM

Globalism is dying. Unfortunately, peace goes hand in hand with it.

by alansaberon 1/31/2026, 12:32 PM

can't wait for my european incorporated company to run on my european cloud servers so I can run my european language models (which will run inference on european english)

by user____nameon 1/31/2026, 3:59 PM

When SaaS was emerging I was always advocating for not putting all our eggs into one basket, everyone always suggested was suggesting I was just paranoid. It's just a basic tenet of resilient systems to diversify depenendencies and not outsource all basic knowhow and abilities, even if its more costly. The reason is that institutional knowledge is difficult to build and easy to throw away. Its for the same reason I was hesitant about supporting all those big free trade agreements, for which I was actually called a "national communist" a few times, lol. Funnily enough nowadays I'm the one more open to those free trade blocks in my social circles and everyone has always been against it. I wonder what the consensus will be twenty years from now.

by llmthrow0827on 1/31/2026, 12:31 PM

EU countries are just vassal states of the USA in practice, anyway. If Uncle Sam wants that data, he's getting it, either by asking politely or by taking it. And the EU countries can't and won't retaliate.

by tonymeton 1/31/2026, 5:58 PM

> I'm an eighth-generation American, and let me tell you, I wouldn't trust my data, secrets, or services to a US company these days for love or money. Under our current government, we're simply not trustworthy.

Thank you Redditor, you must have forgotten about the Patriot Act and how every President since has only worsened Privacy at home and abroad (we could easily go back to the 60s, and beyond). Remember CableGate, Prism, FISA Courts, or 3 dozen other Privacy violating programs?

Yes it all started with Trumpoldemort, lest we say his name.

by tacker2000on 1/31/2026, 5:12 PM

Whats the best Euro S3 alternative?

by aleccoon 1/31/2026, 12:05 PM

Sadly the EU leadership is a bunch of professional bureaucrats living in a comfy bubble completely disconnected with the people or reality.

by deauxon 1/31/2026, 1:22 PM

Everyone talking about rules and regulations being a blocker to EU software sovereignty is completely clueless. Unfortunately a lot of these people are actually European but they've drank the decades of US koolaid.

There are about 200 countries in this world. 195 of them are as of today reliant on foreign-controlled software to a similar degree, which is "completely and utterly in every facet, across consumer, business and government levels".

Let's talk about the other 4 then (excluding the US), with varying degrees. One of them has magnitudes more government interference than the EU. Another one also has both more government interference and stricter rules and regulations, both in terms of labor laws and things like data privacy - even stricter than GDPR. The third one has less of this, but still much more of it than the US, and has the lowest sovereignty level out of the four.

I've talked about three, that leaves the fourth. The fourth one is Russia.

by DeathArrowon 1/31/2026, 3:14 PM

Why now? Why shouldn't have the world reduced its reliance on US tech platforms and services 20 years ago. Or why shouldn't they wait 20 more years.

What did happen?

by jmyeeton 1/31/2026, 1:08 PM

IMHO Europe has one choice, and it may already be too late, and that is to adopt the China model or to descend into fascism and neoliberal economic collapse.

Europe needs to be responsible for its own security and needs its own versions of all the big American tech companies. This administration has done more to destroy American soft power than any other in history and it's not even close. The US has shown itself to be an unreliable partner.

China now has a record of decades of long-term planning and choosing the interests of its populace over corporate interests. It's not problem free by any means but the food is cheap and plentiful, the priority for housing is availability rather than treating it purely as an investment vehicle, infrastructure such as robust public transit is a priority and from the beginning of the Internet age, China has decided not to be beholden to American tech companies so there are Chinese versions of everything.

One may question Europe's ability to innovate in tech given the comparative lack of unicorns produced (vs the US) but that's irrelevant here, for two reasons:

1. Europe doesn't need to innovate. It just needs to copy; and

2. Forcing EU governments and companies to use European platforms will create a captive market.

by moltaron 1/31/2026, 5:26 PM

Good luck rebuilding AWS. It’s a massive undertaking if you want feature parity.

by jgbuddyon 1/31/2026, 11:38 AM

Thus is probably more about the EU having access to eu data than not having the US have access to EU data. Also it’s not like it’s impossible to encrypt things when you store them? This article is more political than logical or technical, it’s unfortunate that government control / intervention in the free market to this degree can be spun into something positive.