The Great European Data Exodus

This article has been written by Jon Toor, CMO,Cloudian, Inc. Prior to Cloudian, Toor served as VP of digital marketing and demand generation at Brocade. He also served as the VP of marketing at Xsigo Systems where he led the outbound marketing team, a group he led from company launch until the company acquisition by Oracle. Toor holds an MBA, Bachelor of Science in mechanical engineering, and a Bachelor of Arts in economics all from Stanford University.

In a significant shift that has been accelerating over recent months, European companies are increasingly abandoning international cloud services in favor of homegrown alternatives.

This trend, driven by geopolitical tensions and concerns over data sovereignty, is reshaping the digital infrastructure landscape across the continent.

Growing Movement
The scale of this migration is substantial and growing rapidly. According to Rupert Bedell, MD, UK hosting company Fasthosts Internet Ltd, there has been “a significant rise in online enquiries about EU data hosters, with the total number of visitors to sites such as european-alternatives.eu rising by more than 640,000 since December 2024,” as reported by Investment Monitor.

This surge in interest isn’t merely speculative. Frank Karlitschek, CEO, Nextcloud GmbH, told Der Spiegel they’re receiving “three times as many inquiries as usual,” while Digital Earth reported a remarkable 250% increase in users over a six-week period, according to Heise Online.

Mark Boost, CEO, CIVO Limited, UK cloud provider, expressed surprise at the rapid acceleration, telling The Register: “It’s amazing how fast the change has been.“

Driving Forces
The primary catalyst for this exodus is what Raymond Alves, founder, Digital Earth, internally refers to as a reaction to changing international relations, as reported by Heise Online. This encompasses concerns about both trade tensions and data protection.

Benjamin Revcolevschi, CEO, OVHCloud, explained to Reuters that “global trade tensions were making European companies rethink their choice of cloud provider from a more strategic perspective.” The market, currently dominated by 3 major international providers, is facing unprecedented scrutiny from European businesses.

The concerns extend beyond trade issues to fundamental questions about data sovereignty. As Bert Hubert, technologist and advisor, Dutch Electoral Council, told The Register, European organizations are increasingly worried about their dependence on international cloud infrastructure, especially as geopolitical tensions rise.

Government Action
European governments are increasingly acting on these concerns. The Dutch parliament has voted overwhelmingly to decrease overreliance on international technology companies, according to Investment Monitor. The vote reflects growing worries about potential implications of foreign legislation that allows authorities to demand access to data stored on servers by internationally-based companies, including servers located overseas.

European government initiatives like GAIA-X, the European cloud infrastructure project presented in 2019, are gaining momentum. The project aims to build a trustworthy European cloud ecosystem with a focus on standardization, compatibility, and improved visibility for European cloud providers.

Challenges in Migration
Despite strong motivations to migrate, companies face significant challenges when attempting to move away from major international providers. The transition is complex, time-consuming, and potentially costly.

According to Karlitschek, Nextcloud, migration times “tended to be measured in months or years,” with a methodical approach recommended, as reported by The Register. This timeline presents a substantial obstacle, especially for organizations with extensive cloud deployments.

Another significant challenge is finding European alternatives that match the comprehensive service offerings of international providers. Maaike Okano-Heijmans, senior research fellow, Clingendael Institute, noted to Euronews that while there are Dutch or European cloud services that could serve as alternatives, none offer an “all-in-one package” like international companies.

A KPMG study for the Dutch government found that the 8 European cloud providers they examined offered “a limited range of services” compared to international cloud service providers, according to Euronews.

Industry Response
European cloud providers are actively responding to these challenges. The Cloud Infrastructure Service Providers in Europe (CISPE) has committed €1 million to develop what they call “sovereign cloud services,” as reported by Network World.

Ben Maynard, director of communications, CISPE, explained that customers “need options to select cloud services that rely on 100% European cloud infrastructure and services and are immune from disruption, access, and potential removal by foreign actors.“

European tech leaders are increasingly vocal about the need for homegrown alternatives. Over one hundred industry leaders sent a letter to the EU calling for the creation of a ‘EuroStack‘ of technology to counteract the continent’s overreliance on international firms, Investment Monitor reported.

Farouk Merzougui, chief legal officer, Softonic International SA, emphasized the strategic imperative, telling Network World that for European companies, staying with cloud operations fully owned and operated by European interests “is no longer just a matter of choice, but of strategic necessity in today’s uncertain geopolitical environment.“

Navigating the Path to Data Sovereignty Through On-Premises Storage Solutions
As European organizations seek greater independence from international cloud providers, on-premises storage technologies are emerging as a critical component in their data sovereignty strategy. These solutions enable companies to maintain complete control over data location and access while still leveraging familiar workflows.

Object storage technologies that support widely-used industry-standard APIs present a particularly compelling option. By implementing compatible on-premises infrastructure, organizations can maintain existing application compatibility while ensuring data remains under the jurisdiction of European laws, not subject to foreign government access requests.

Several vendors offer storage platforms specifically designed to address these sovereignty concerns, with features including multi-tenancy capabilities for organizations looking to create internal or external service provider environments. These platforms can provide enterprise-grade security, durability, and performance without the geopolitical risks associated with foreign-controlled infrastructure.

Industry analysts note that the transition doesn’t need to be all-or-nothing. Many organizations are implementing hybrid approaches, strategically repatriating their most sensitive data while maintaining relationships with international providers for less critical workloads.

For organizations beginning this journey, experts recommend starting with a comprehensive data classification exercise to determine which workloads are most suitable for repatriation. Applications with strict compliance requirements, sensitive intellectual property, or critical operational data are typically prioritized first.

As European businesses continue to navigate an increasingly complex geopolitical landscape, these on-premises solutions represent a strategic investment in digital autonomy-providing the security, compliance, and control that increasingly define competitive advantage in today’s uncertain environment.