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Home Ars Technica

Europe is looking for alternatives to US cloud providers

Ars Technica by Ars Technica
March 25, 2025
in Ars Technica
Reading Time: 4 mins read
129
A A
0

Matt Burgess, wired.com
2025-03-25 09:12:00
arstechnica.com

Steffen Schmidt, the CEO of Medicusdata, a company that provides text-to-speech services to doctors and hospitals in Europe, says that having data in Europe has always “been a must,” but his customers have been asking for more in recent weeks. “Since the beginning of 2025, in addition to data residency guarantees, customers have actively asked us to use cloud providers that are natively European companies,” Schmidt says, adding that some of his services have been moved to Nöbauer’s Exoscale.

Harry Staight, a spokesperson for AWS, says it is “not accurate” that customers are moving from AWS to EU alternatives. “Our customers have control over where they store their data and how it is encrypted, and we make the AWS Cloud sovereign-by-design,” Staight says. “AWS services support encryption with customer managed keys that are inaccessible to AWS, which means customers have complete control of who accesses their data.” Staight says the membership of the PCLOB “does not impact” the agreements around EU-US data sharing and that the CLOUD Act has “additional safeguards for cloud content.” Google and Microsoft declined to comment.

The potential shift away from US tech firms is not just linked to cloud providers. Since January 15, visitors to the European Alternatives website increased more than 1,200 percent. The site lists everything from music streaming services to DDoS protection tools, says Marko Saric, a cofounder of European cloud analytics service Plausible. “We can certainly feel that something is going on,” Saric says, claiming that during the first 18 days of March the company has “beaten” the net recurring revenue growth it saw in January and February. “This is organic growth which cannot be explained by any seasonality or our activities,” he says.

While there are signs of movement, the impact is likely to be small—at least for now. Around the world, governments and businesses use multiple cloud services—such as authentication measures, hosting, data storage, and increasingly data centers providing AI processing—from the big three cloud and tech service providers. Cottlehuber says that, for large businesses, it may take many months, if not longer, to consider what needs to be moved, the risks involved, plus actually changing systems. “What happens if you have a hundred petabytes of storage, it’s going to take years to move over the Internet,” he says.

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