Can the EU afford to drive out American cloud services?

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Publication Date March 2023
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The European Commission has grand ambitions for the digital transformation of European businesses. To achieve this, the Commission wants 75% of European businesses to adopt cloud computing services or similar technologies by 2030. However, American tech firms like Amazon, Microsoft and Google currently dominate the European cloud computing market. Chinese firms like Alibaba and Huawei are keen to make headway. Despite some member-states’ support for European champions in the sector, European cloud companies remain minnows. In response, some EU countries want to stifle foreign cloud computing services. These countries’ concerns are not irrational. But disadvantaging America’s cloud giants will do Europe more harm than good.

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ECFR essay collection: July 2020: Europe’s digital sovereignty: From rulemaker to superpower in the age of US-China rivalry

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