25. March 2025
Europe Scrambles As Trump Era Raises Data Security Fears Over Relying On Us Cloud Giants
The second Donald Trump administration has led to a growing interest in exploring alternative cloud services in Europe, driven by concerns about privacy, data access, and security. European officials and businesses are reevaluating their dependence on American cloud providers, such as Google Cloud, Microsoft Azure, and Amazon Web Services (AWS), which host the majority of the Internet’s infrastructure.
US tech companies have a significant impact on Europe, hosting vast networks of servers, storage, and databases for thousands of businesses across the continent. However, this dependence has also created concerns about the potential risks of relying on US-based companies. “There’s a huge appetite in Europe to de-risk or decouple the over-dependence on US tech companies,” says Marietje Schaake, a nonresident fellow at Stanford’s Cyber Policy Center and a former decade-long member of the European Parliament. “The idea is to create a more resilient and secure digital ecosystem that can better protect European citizens’ data and security.”
Schaake’s concerns are shared by many in Europe who believe that US tech companies have compromised on data protection and security in favor of profit margins. The example of Edward Snowden, the whistleblower who exposed the NSA’s mass surveillance programs, is often cited as a prime illustration of this concern. In 2013, Snowden revealed that the NSA had been collecting phone records from millions of Americans through its PRISM program, prompting widespread outrage.
In response to these concerns, European officials and businesses are actively seeking alternative cloud services that can better meet their needs. Exoscale and Elastx, two European-based cloud service companies, have seen an uptick in potential customers looking to abandon US cloud providers over the last two weeks. “We’ve had multiple discussions with organizations about what it would take to uproot their services, data, and systems,” says Thomas Sribling, co-founder of Exoscale.
One of the primary drivers behind this shift is the uncertainty surrounding the Trump administration’s stance on data protection and security. In 2018, the US National Security Agency (NSA) was accused of hacking into German Chancellor Angela Merkel’s phone, leading to widespread outrage across Europe. The incident sparked a heated debate about the need for greater transparency around US intelligence activities.
The impact of this uncertainty is being felt by European businesses that rely on US cloud services. A study by the EU’s High-Level Expert Group (HLEG) on Artificial Intelligence found that 80% of large enterprises in the EU use cloud services, with many relying on AWS, Google Cloud, and Microsoft Azure. However, the HLEG report also noted that “the use of cloud services raises significant data protection risks” for these companies.
In response to these concerns, European officials are actively exploring alternative cloud services that can better meet their needs. The EU’s flagship project, Gaia-X, aims to create a pan-European cloud infrastructure that can compete with the likes of AWS and Google Cloud. Gaia-X is being developed by a consortium of 14 European companies, including IBM, Orange, and Telefónica.
Gaia-X secured €150 million in funding from the EU’s Horizon 2020 program in March, which has significant implications for the development of the project. The project aims to create a secure, reliable, and sustainable cloud infrastructure that can meet the needs of large enterprises across Europe. While the development of Gaia-X is still in its early stages, it has already attracted interest from European businesses.
European officials are calling for greater transparency and accountability from US tech companies. In March, 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. The motions emphasize the need for greater data protection, security, and transparency around US intelligence activities.
The shift away from US cloud providers is still in its early stages, but it has significant implications for the future of digital infrastructure across Europe. As Schaake notes, “The idea is to create a more resilient and secure digital ecosystem that can better protect European citizens’ data and security.” With Gaia-X and other alternative cloud services on the horizon, it seems likely that Europe will become increasingly reliant on homegrown solutions for its digital infrastructure.
The development of Gaia-X offers a glimmer of hope for greater resilience and security in Europe’s digital infrastructure. As the global landscape continues to shift under the Trump administration, European officials and businesses must prioritize data protection and security to ensure the long-term reliability of their digital infrastructure.