Europe Accelerates Tech Sovereignty Plans Amid Rising US Tensions
European policymakers and business leaders are intensifying efforts to reduce the continent's substantial dependence on American technology infrastructure, driven by escalating geopolitical tensions and recent threats from the Trump administration. This strategic shift represents a significant departure from decades of technological collaboration and integration between transatlantic partners.
Geopolitical Catalyst for Technological Independence
The recent threats from President Trump regarding potential armed conflict with allies have injected unprecedented urgency into long-simmering European debates about technological sovereignty. European officials now openly discuss worst-case scenarios where a White House executive order could cut off access to essential American data centers or software platforms that underpin European economies and governments.
"When you start having these kinds of thoughts, even if they're just thoughts, you have to start thinking: How would that work?" questioned Bernard Liautaud, managing partner of Balderton Capital, a prominent European venture-capital firm. "Can you imagine Europe functioning without American technology? It's very hard to imagine."
Legislative and Policy Responses
The European Parliament recently passed a landmark "technological sovereignty" resolution that advocates for using public procurement criteria to favor European products where feasible. This resolution proposes new legislation specifically designed to promote European cloud providers and reduce dependencies on foreign technology infrastructure.
According to officials familiar with ongoing discussions, the European Union's executive arm is actively developing new legislation aimed at promoting tech sovereignty. Security risks associated with American technology have become part of these conversations—a development that would have been unthinkable just six months ago.
The Scale of European Dependence
The magnitude of Europe's reliance on US technology has reached unprecedented levels, particularly in cloud computing services dominated by American giants. Research firm IDC reports that in 2024, European customers spent nearly $25 billion on infrastructure services from the top five US cloud companies, representing a staggering 83% of the total European market.
"Big European companies should use European software," emphasized Nicolas Dufourcq, head of French state-owned investment bank Bpifrance, during a recent television interview. "Choosing American digital technology by default is too easy and must stop."
Historical Context and Current Challenges
European efforts to escape US technological dominance have been recurring themes for decades, intensifying after Edward Snowden's 2013 revelations about US surveillance practices and again in 2018 when US legislation granted law enforcement authority to request data stored overseas by American cloud providers.
Despite these concerns, US companies have maintained and even expanded their European market share through strategic adaptations, including building more data centers on European soil and pledging not to transfer data elsewhere. In recent years, these companies have introduced options to store data with subsidiaries or partners under European control.
Corporate Responses and Sovereign Solutions
American technology giants are implementing various strategies to address European sovereignty concerns. Microsoft has expanded partnerships with European companies like Delos Cloud—a subsidiary of SAP—to deliver services under European ownership and control. The company has also restructured corporate subsidiaries and installed boards composed exclusively of Europeans.
Amazon recently launched a "sovereign cloud" service in Europe, operated by EU citizens and based in Germany. Google has established partnerships with local companies across several European countries for its sovereign cloud services, including a joint venture in France fully operated by a local business.
National Initiatives and Leadership
France and Germany have emerged as particularly vocal advocates for technological independence since the new Trump administration began pressuring European leaders. Germany's digital ministry is testing openDesk, an open-source alternative to Microsoft workplace tools, while Chancellor Friedrich Merz hosted a digital-sovereignty summit with France to advocate for loosening EU tech rules and European preference in technology purchases.
French President Emmanuel Macron has made promoting local companies and reforming EU regulations central to his second term, actively supporting Mistral AI—one of Europe's few leading artificial-intelligence developers—and attracting billions in AI data center investments to France.
"Our willingness is clearly to do everything we can to build European champions," declared Macron at the German digital-sovereignty summit. "This is just a refusal of being a vassal."
Economic Stakes and Future Implications
The economic implications are substantial for both sides. American technology companies exported more than $360 billion in digitally deliverable services to Europe in 2024, including advertising and artificial-intelligence tools. Google parent Alphabet generated 29% of its nearly $30 billion third-quarter revenue from Europe, the Middle East, and Africa.
European policymakers emphasize that their focus remains on curbing dependencies and boosting European companies rather than completely abandoning American technology. However, the current geopolitical climate has transformed what was once theoretical discussion into urgent strategic planning, with European nations recognizing that technological sovereignty has become inseparable from political and economic independence in the digital age.
