European Companies Shift Towards Local Cloud Solutions Amid Privacy Concerns
In recent months, there has been a noticeable trend among European companies moving their data operations away from U.S.-based cloud providers to local alternatives. Dave Cottlehuber, founder of SkunkWerks, a tech infrastructure firm in Austria, has spearheaded this shift for his business by transitioning servers and databases to European services. Cottlehuber emphasized that for him, prioritizing privacy over profit is a fundamental principle, stating, "Privacy is a right, not a privilege." He believes that relocating these services not only enhances data protection for customers but also minimizes his business’s financial contributions to U.S. entities that may not align with his values.
The move towards European cloud services reflects a growing demand for data sovereignty, particularly among businesses handling sensitive information. Steffen Schmidt, CEO of Medicusdata, which provides text-to-speech services to healthcare providers across Europe, acknowledged that his clients have increasingly requested data residency guarantees as well as assurance that their data will be managed by inherently European cloud providers. This shift has prompted Schmidt’s company to utilize services from firms like Exoscale, reflecting a broader trend across the region.
While some cloud providers like AWS maintain that they are not experiencing significant client losses to European alternatives, they assert that customers retain control over their data storage and encryption methodologies. AWS spokesperson Harry Staight noted that their infrastructure is designed to empower users in managing access and data security. However, industry observers point out that while established players like AWS offer vast capabilities, ongoing European movement suggests a clear preference for data management within the region amid rising geopolitical tensions.
This migration of data services is not limited to healthcare and tech firms; it represents a larger societal shift toward safeguarding privacy in a digital age. Since mid-January, the European Alternatives website reported a staggering 1,200 percent increase in visitors, indicating a growing interest in local digital services. According to Marko Saric, cofounder of the analytics service Plausible, the surge reflects organic growth potentially driven by heightened awareness surrounding data privacy and security concerns.
Despite these early indicators, the transition away from U.S. tech giants is likely to be gradual. Large enterprises often rely on a multitude of cloud services for various operational needs, including data storage, AI processing, and cybersecurity measures. Cottlehuber warned that for companies with extensive data resources, such as those holding hundreds of petabytes, the logistical challenges associated with relocating these assets can be monumental, often requiring years of planning and execution.
Many European startups and established firms have historically struggled to compete with the monumental resources and infrastructure of American companies like Google, Microsoft, and Amazon. Bert Hubert, an entrepreneur and former regulator, voiced concerns that existing European alternatives often cannot match the vast services offered by these giants. Consequently, this hampers the potential for more companies to move away from U.S. providers, especially given the dependency on a diverse range of cloud-based services that encompass everything from data analytics to AI capabilities.
However, calls for an increased investment in European technology are growing. Former MEP Schaake emphasized the need for strategic public service procurement approaches and a concerted effort to advance a cohesive European digital sovereignty strategy. She pointed out that the geopolitical landscape underscores the urgency for Europe to cultivate its own ecosystem of technological solutions that can compete on a global scale.
This ongoing migration towards local cloud services signals a significant pivot in the European digital landscape, driven by both privacy concerns and the desire for independent data control. As European firms continue to navigate the complexities of data management in a highly interconnected world, the choices they make in the coming years will be pivotal in defining regional cyber resilience and data integrity. As organizations assess their vulnerabilities, leveraging insights from frameworks like MITRE ATT&CK for identifying potential adversary tactics — including initial access, persistence, and privilege escalation — becomes increasingly critical in fortifying defenses against evolving cyber threats.
