"Gartner told The Reg last year that IT spending in Europe is set to grow by 11 percent in 2026, hitting $1.4 trillion, with a big chunk rolling into "sovereign cloud" options and on‑prem/edge architectures. The kicker? Fully 61 percent of European CIOs and tech leaders say they want to increase their use of local cloud providers. More than half say geopolitics will prevent them from leaning further on US‑based hyperscalers."
"The American hypercloud vendors have figured this out. AWS recently made its European Sovereign Cloud available. This AWS cloud, Amazon claims, is "entirely located within the EU, and physically and logically separate from other AWS Regions." On top of that, EU residents will "independently operate it" and "be backed by strong technical controls, sovereign assurances, and legal protections designed to meet the needs of European governments and enterprises for sensitive data.""
European organizations are relocating sensitive workloads from US hyperscalers to local sovereign cloud, on‑premises, and edge architectures because of distrust tied to current U.S. government policies. IT spending in Europe is projected to rise 11 percent in 2026 to $1.4 trillion, with a sizable portion directed toward sovereign cloud and localized infrastructure. Sixty‑one percent of European CIOs plan to increase use of local cloud providers, and a majority cite geopolitics as a barrier to deeper reliance on US hyperscalers. US cloud vendors are responding with EU‑specific sovereign offerings, while European trade groups argue such frameworks advantage incumbents.
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