US based hyperscalers continue to dominate digital infrastructure worldwide. Yet across Europe, there is a growing movement to protect data from both cyber threats and extraterritorial laws, and to ensure full regulatory compliance. Cloud sovereignty has become a cornerstone of this effort.
Cloud sovereignty ensures that data, workloads, operations, and digital infrastructure remain under the jurisdictional control of the country or region where they reside. It goes beyond simple data residency. For European organizations, it is about visibility and legal control over how and where sensitive information is stored, processed, transferred, and who can access it.
For organizations across the EU, digital and cloud sovereignty are closely tied to trust, compliance, and competitiveness. Regulations such as the GDPR require that personal data remain protected under EU law. Noncompliance can result in severe fines and long term reputational damage.
The stakes are even higher for government agencies, operators of Critical National Infrastructure (CNI), and regulated industries such as healthcare and finance. These sectors handle highly sensitive data and face stringent compliance demands. For them, cloud sovereignty is essential to meet regional laws, build operational resilience, and reduce exposure to foreign surveillance.
The European Union has established some of the most comprehensive data protection and cybersecurity regulations in the world. Together, they shape the region’s push for a secure and sovereign digital ecosystem:
Although both prioritize data protection, a sovereign cloud and a private cloud serve different purposes:
Private Cloud: A dedicated infrastructure for a single organization that offers customization, scalability, and security. However, it may not meet national or regional jurisdictional requirements. A private cloud hosted by a non EU provider can still fall under foreign legal access laws.
Sovereign Cloud: Adds legal, operational, and jurisdictional layers to ensure compliance with local regulations. It guarantees regional control, compliance with EU standards, and protection from foreign access requests. It is a private cloud built for sovereignty.
The European cloud market continues to grow rapidly, reaching approximately €61 billion in 2024. While US based hyperscalers still hold around 70 percent of the market, European providers are expanding quickly and strengthening sovereignty focused offerings.
Prominent EU cloud providers include OVHcloud, Hetzner, Scaleway, STACKIT, Exoscale, and Open Telekom Cloud. Many of these providers focus on highly regulated industries, offering sovereign cloud environments aligned with EU and country specific standards. See our overview of the best European alternatives to Big Tech.
US hyperscalers have announced “sovereign” cloud solutions for European clients, but they remain bound by American surveillance and data access laws. These include:
Both laws directly conflict with GDPR, which requires a valid legal basis for cross border data transfers, such as a Mutual Legal Assistance Treaty. As a result, EU companies using US cloud services face a compliance paradox: their vendors may technically violate EU data protection standards. Explore the implications in our article on EU sovereignty and Big Tech encryption.
European enterprises can take concrete steps to align with sovereignty principles while maintaining agility and innovation:
Cloud sovereignty is no longer optional for European enterprises. It is a strategic imperative that underpins digital independence, regulatory compliance, and long term trust. By selecting European providers, maintaining encryption control, and aligning governance with EU standards, organizations can ensure their cloud operations remain secure, compliant, and sovereign.
To learn how Wire enables sovereign collaboration and secure communication through end to end encryption and open source transparency, contact our team.