Why Europe must reclaim its European tech sovereignty and cloud independence before it's too late

Imagine a Europe where its data, infrastructure, and digital future are fully under its own control. Right now, that vision remains out of reach—Europe is facing a digital sovereignty crisis, with increasing concerns over cloud independence, data control, and compliance with European regulations like GDPR, as discussed in our article Understanding European Tech Sovereignty: Why Europe is Taking Back Control. Despite being home to some of the world’s leading technology companies and boasting strong regulatory frameworks like the General Data Protection Regulation (GDPR), the continent remains overwhelmingly dependent on foreign cloud service providers.

A staggering 92% of Europe’s cloud infrastructure is controlled by U.S. companies, including Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. This dominance is largely due to their early market entry, significant infrastructure investments, and aggressive expansion strategies, making it difficult for European alternatives to compete at scale. However, European cloud providers are emphasizing lower egress costs to attract customers concerned about high US cloud expenses. Policymakers in Europe express concern over the dominance of US and Chinese tech companies, which further complicates efforts to achieve digital sovereignty.

This reliance creates critical business risks, including challenges in maintaining cloud independence, ensuring GDPR compliance, and mitigating security vulnerabilities. Organizations must report data breaches to national supervisory authorities within 72 hours if they have an adverse effect on user privacy, further emphasizing the importance of robust data protection measures.

• Data governance concerns: European companies entrust sensitive business and customer data to non-European firms, which may be subject to foreign government surveillance and extraterritorial regulations like the U.S. CLOUD Act.
• Vendor lock-in: Businesses become trapped in proprietary ecosystems, making it costly and technically challenging to switch providers.
• Economic and strategic vulnerability: The EU lacks control over its cloud infrastructure, creating potential security risks in geopolitical conflicts.

The need for Europe to reclaim control over its digital future is clearer than ever. One country that has already taken steps toward this goal is Switzerland, which has launched a national initiative to secure its cloud infrastructure.

Case study: the Swiss government cloud initiative

Recognizing these risks, Switzerland has taken proactive steps to secure its digital infrastructure. In 2023, the Swiss government committed $231 million to build a national cloud service designed to keep sensitive governmental data within its borders. The public sector has been at the forefront of adopting sovereign cloud solutions, driven by stringent data protection requirements and national security concerns. As a data controller, the Swiss government is responsible for ensuring compliance with data protection laws, informing data subjects about their rights, and maintaining transparency about data collection and processing purposes. The initiative aims to:

• Reduce reliance on foreign cloud providers.
• Ensure compliance with Switzerland’s strict data protection laws.
• Strengthen national security by keeping government-related data within sovereign control.

Switzerland’s approach sets a precedent for broader European efforts to achieve cloud independence, reduce vendor lock-in, and enhance data sovereignty. The question now is: how can other European nations follow suit?

European cloud services: a rising alternative

While U.S. providers currently dominate the market, European cloud companies are stepping up. For example, OVHcloud, one of Europe’s largest cloud providers, has been expanding its services to compete with U.S. giants, and the Gaia-X initiative is working to establish a federated data infrastructure that aligns with European values of privacy and security. European hosting providers are transcending beyond AWS, Azure, and GCP to address data sovereignty and local service demands. Hivenet, for example, offers a distributed cloud storage model that is built on principles of security, sustainability, and community-powered infrastructure. Unlike traditional data centers, Hivenet’s model:

• Eliminates reliance on centralized servers that can be exploited by foreign entities.
• Empowers businesses and individuals to store and process data within Europe’s regulatory framework.
• Reduces energy consumption by leveraging unused storage and compute resources from a distributed network.

By supporting homegrown European cloud providers, businesses can play a direct role in shaping a future where European data is protected by European laws while also fostering economic growth, job creation, and innovation within the region. Trust in European cloud services is increasing due to local data center operations and self-made hardware by some providers. Choosing alternatives to AWS and other U.S.-based providers ensures compliance with GDPR and strengthens Europe's digital infrastructure.

Digital identity and security: a pillar of sovereignty and data protection principles

Beyond cloud storage, digital identity systems play a fundamental role in Europe’s vision for digital sovereignty. A federated, privacy-preserving approach to identity management is essential for safeguarding European citizens and businesses from external threats.

The problem with foreign identity providers

Many European citizens and businesses rely on U.S. and Chinese platforms for identity verification and authentication. This creates risks such as:

• Data misuse and privacy breaches by non-European entities.
• Exposure to foreign regulations that may conflict with European privacy laws.
• Security vulnerabilities due to reliance on third-party infrastructure.

A European solution: federated identity systems and personal data protection

To counteract these risks, the EU is championing federated digital identity platforms that align with strict data protection standards. These systems:

• Allow users to authenticate across multiple services using a single, secure identity.
• Ensure that no single entity holds centralized control over identity verification.
• Enable businesses to comply with GDPR and upcoming EU digital identity regulations.

The European Union’s Data Protection Framework

The European Union’s data protection framework is a cornerstone of its commitment to digital sovereignty. At the heart of this framework is the General Data Protection Regulation (GDPR), which came into effect in 2018. The GDPR is widely regarded as the toughest privacy and security law in the world. It sets out stringent rules for the collection, storage, and processing of personal data, providing individuals with greater control over their information.

Under the GDPR, organizations that process data of EU citizens, regardless of their location, must comply with strict data protection principles. This includes appointing a data protection officer, conducting data protection impact assessments, and ensuring transparent data processing practices. A Data Protection Officer (DPO) must be appointed by organizations that process data on a large scale or involve special categories of data. The regulation also introduces new rights for individuals, such as the right to access, rectify, and erase their personal data. The GDPR, which was put into effect on May 25, 2018, also imposes fines for violating its terms that can reach up to €20 million or 4% of global revenue, whichever is higher, making compliance a critical priority for organizations.

The GDPR is widely regarded as one of the most comprehensive and robust data protection laws in the world. It has set a global standard, influencing data protection laws in countries like the United States, Australia, and Japan. Data protection is a fundamental right under EU law, and the European Union’s data protection framework is regularly reviewed and updated to remain effective in the rapidly changing digital landscape.

By enforcing these regulations, the EU ensures that data controllers and data processors adhere to high standards of data protection, thereby safeguarding the rights of data subjects. Organizations must notify data subjects of data breaches within 72 hours, unless it is unlikely to result in a risk to their rights. Additionally, data subjects must be allowed to withdraw their consent at any time, and the process of doing so must not be harder than it was to opt in. This framework not only protects personal data but also promotes trust and confidence in the digital economy.

The role of Hivenet in strengthening European digital sovereignty

Hivenet aligns with Europe’s vision for a secure, independent digital future. By decentralizing cloud storage and computing, Hivenet provides:

• Data sovereignty: Users maintain full control over their information, free from foreign interference.
• Sustainability: By leveraging idle storage and computing power, Hivenet minimizes the environmental impact of cloud services.
• Enhanced security: Distributed storage makes data breaches significantly harder, reducing single points of failure.

Hivenet also ensures transparent and lawful data collection practices, fully compliant with GDPR. This includes clear disclosure of data collection methods, the lawful basis for processing, and the rights of individuals regarding their data.

European businesses looking to secure their operations can integrate Hivenet’s distributed cloud to ensure compliance with EU regulations while reducing dependency on non-European providers. This is becoming increasingly relevant as AI and cloud computing reshape global digital power dynamics, as explored in our article Cloud Computing, AI, and the Fight for Digital Independence.

A call for action on data breach prevention

The EU has the potential to reclaim its technological sovereignty, secure its cloud infrastructure, and reduce reliance on foreign tech giants, but achieving this requires decisive action. To this end, the EU has created regulations to promote digital autonomy amid concerns about US and Chinese influence on technology and data. Businesses, policymakers, and consumers must:

• Support European cloud and identity service providers.
• Advocate for investments in European digital infrastructure.
• Push for policies that protect data sovereignty while fostering innovation.

Data sharing is crucial for maintaining transparency and international cooperation, as highlighted by the World Economic Forum's efforts to facilitate the exchange of data across borders.

Now is the moment for Europe to take meaningful steps toward reclaiming its digital sovereignty. Europe’s digital future depends on its ability to break free from foreign dependencies and establish a sovereign, resilient, and secure technology ecosystem.

FAQ: European tech sovereignty and Hivenet

Why is Europe so dependent on U.S. cloud providers?

The dominance of AWS, Microsoft Azure, and Google Cloud stems from their early market entry, aggressive expansion strategies, and vast infrastructure investments. European alternatives have traditionally struggled to compete at the same scale.

What risks does this dependency create?

Key risks include data governance issues, vendor lock-in, potential exposure to foreign government surveillance, and economic vulnerabilities.

What is digital sovereignty?

Digital sovereignty refers to a nation or region’s ability to control its digital infrastructure, data, and cybersecurity without undue influence from foreign entities.

How does Hivenet support European digital sovereignty?

Hivenet’s distributed cloud model keeps data within European jurisdictions, enhances security through decentralization, and promotes sustainability by utilizing existing computing resources.

How does a distributed cloud differ from a traditional cloud?

Traditional cloud providers use centralized data centers, while distributed cloud systems like Hivenet store and process data across a network of independent devices, improving security and efficiency.

How can businesses transition to European cloud solutions?

Businesses can start by migrating workloads to European cloud providers, integrating federated digital identity platforms, and ensuring compliance with European data protection regulations.

What regulations support European digital sovereignty?

Key regulations include the GDPR, the Digital Markets Act (DMA), and upcoming EU digital identity regulations.

Is Hivenet a viable alternative to major cloud providers?

Yes. While Hivenet does not offer the exact same services as AWS or Azure, its distributed storage and compute capabilities provide a secure, cost-effective, and privacy-focused alternative for businesses and individuals.

How can European governments support cloud independence?

Governments can invest in European cloud infrastructure, provide funding for local tech initiatives, and create policies that favor regional cloud adoption over foreign competitors.

How do I get started with Hivenet?

You can learn more about Hivenet’s distributed cloud and how it supports digital sovereignty by visiting hivenet.com.

Why is using clear and plain language important in communications about data protection and sovereignty?

Using clear and plain language ensures that information about data protection and sovereignty is concise, transparent, and easily understandable. This is particularly important when addressing complex topics or when the audience includes vulnerable groups, such as children.

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