Europe seeks to counter US dominance with sovereign cloud architectures after AWS outage

Following a major AWS outage exposing Europe’s reliance on US-based cloud providers, the continent accelerates efforts to develop resilient, sovereign cloud infrastructure through collaborative initiatives and federated edge networks.

The recent widespread outage of Amazon Web Services (AWS) has cast a stark light on Europe’s pronounced reliance on a small cadre of US-based cloud providers, notably AWS, Microsoft Azure, and Google Cloud, which together command about 70% of the European cloud market. This incident, which disrupted critical digital services across sectors including banking and public infrastructure and affected millions of users, has reignited urgent calls for Europe to develop sovereign cloud capabilities that prioritize resilience, data control, and regulatory compliance.

The outage, reportedly triggered by a Domain Name System (DNS) failure, exposed the vulnerability inherent in depending heavily on foreign hyperscale providers. Some estimates suggest the global economic loss from this event could run into the hundreds of billions of dollars. This fragility has bolstered arguments for building a cloud infrastructure fully managed and hosted within Europe. Such sovereignty would not only reduce exposure to single points of failure but also ensure that sensitive data, encompassing personally identifiable information and intellectual property, remains under European jurisdiction, aligning with stringent national and EU data protection laws.

Cloud sovereignty is increasingly framed as a multifaceted necessity, intertwining concerns over security, innovation, and political autonomy. The dominance of US platforms extends beyond cloud computing into artificial intelligence, where most AI training and workloads rely on these providers. With AI forming the backbone of future technological innovation, ensuring European control over AI data and infrastructure is deemed critical for maintaining compliance and competitive edge in the long term.

Recognising the scale of the challenge, experts highlight that no single European provider currently has the capacity to dethrone these hyperscale giants alone. Collaborative approaches, exemplified by initiatives such as the Cloud Infrastructure Service Providers in Europe (CISPE) and the Important Project of Common European Interest on Next Generation Cloud Infrastructure and Services (IPCEI-CIS), are seen as essential. These alliances aim to foster vendor-neutral, open-source cloud and edge technologies, catalysing a more equitable and resilient digital ecosystem in Europe while defending digital sovereignty.

Central to this strategy is enhancing cloud neutrality and portability, allowing enterprises to seamlessly migrate workloads across providers without vendor lock-in. The vision includes creating a “virtual hyperscaler,” a federated network of distributed cloud-edge infrastructures from multiple European providers, pooling their resources to rival the scale and reach of US hyperscale services. This architecture would not only boost resilience and flexibility but also deliver efficient management through interoperable platforms that simplify resource administration across providers.

Sovereign cloud solutions also dovetail with Europe’s environmental ambitions. Distributed cloud models, which process data close to its source via edge computing, reduce latency and cut down on energy consumption compared to centralised data centres. Research indicates that such architectures can reduce energy use by between 19% and 28%, providing a pathway to more sustainable digital infrastructure. Furthermore, deploying comprehensive energy-efficiency metrics within these platforms would empower users to make informed decisions about application deployment that balance performance, cost, and environmental impact.

While the AWS outage highlights the pressing need for change, Europe’s journey towards digital sovereignty is complex and ongoing. The Gaia-X initiative, launched in 2020 to create a federated and secure data infrastructure across Europe, has made considerable conceptual progress, though practical adoption remains limited with only a handful of operational projects out of over 150 in preparation. Plans to expand Gaia-X’s offerings through a multi-provider service catalogue aim to bring more secure cloud options to sensitive sectors like energy and aerospace, sectors where sovereignty is paramount.

The drive for sovereign cloud infrastructure has also gathered political and industrial support. Earlier this year, over 90 European technology companies, including giants Airbus and Dassault Systèmes, petitioned for the establishment of a sovereign infrastructure fund to bolster strategic autonomy in digital technologies. This fund would back local suppliers and promote a ‘buy European’ procurement policy, complementing the broader sovereign cloud agenda.

This strategic imperative is further amplified by regulatory developments in Europe. Under the EU’s Digital Operational Resilience Act (DORA), major foreign providers such as AWS, Google Cloud, and Microsoft have been designated as ‘critical’ third-party computing providers for the financial sector, placing them under enhanced EU regulatory supervision. This reflects recognition at the highest levels of the systemic risks associated with heavy dependence on external cloud services in sensitive industries.

European cloud providers are also making tangible gains in market competitiveness. The recent legal victory by CISPE over Microsoft has facilitated greater flexibility for European providers to offer Microsoft software under fairer licensing terms while maintaining customer data privacy, a step toward reducing vendor lock-in and enhancing consumer choice within Europe.

In response to longstanding European concerns over sovereignty and data protection, AWS itself has launched a European Sovereign Cloud in 2023, claiming to meet EU privacy standards by keeping data and operations entirely within the EU. While this initiative addresses compliance issues, it still reflects a paradigm where sovereignty is negotiated within the framework of US-based providers rather than stemming from wholly European-controlled infrastructure.

The AWS outage serves as a clarion call underscoring that Europe cannot depend on infrastructure beyond its control for its digital future. Achieving true cloud sovereignty demands coordinated efforts across public and private sectors to build interoperable, vendor-neutral ecosystems. By fostering collaboration, expanding portability, and investing in distributed cloud-edge networks, Europe can develop resilient, sustainable, and sovereign cloud platforms. This will not only safeguard critical services and data but also uphold Europe’s digital autonomy amid the evolving global technological landscape.

📌 Reference Map:

• ^[1] The Fast Mode – Paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11
• ^[2] Euronews – Paragraphs 1, 5
• ^[3] ITPro – Paragraph 7
• ^[4] Reuters (March 2025) – Paragraph 8
• ^[5] Reuters (November 2025) – Paragraph 9
• ^[6] TechRadar – Paragraph 10
• ^[7] AP News – Paragraph 11

Source: Fuse Wire Services