EU Takes Major Step Toward Digital Sovereignty with €180 Million Cloud Initiative

Europe’s Push for Digital Independence

The European Commission has taken a significant stride in its quest for digital sovereignty with the launch of a substantial €180 million tender for sovereign cloud services. This six-year contract, announced on October 10, 2025, represents one of the EU’s most decisive moves to reduce dependency on non-European cloud providers and establish greater control over its digital infrastructure., according to recent innovations

Europe’s Push for Digital Independence
Defining Sovereignty in the Cloud Era
Catalyzing the European Cloud Market
Industry Response and Market Implications
Looking Ahead: Award Timeline and Future Impact

This procurement falls under the Cloud III Dynamic Purchasing System, the EU’s specialized framework for acquiring cloud computing services. The contract will provide European Union institutions, bodies, offices, and agencies with cloud services that meet stringent sovereignty requirements, potentially setting a new standard for cloud procurement across the continent., as earlier coverage, according to expert analysis

Defining Sovereignty in the Cloud Era

The European Commission has established a comprehensive framework for measuring cloud sovereignty that extends beyond basic data location requirements. According to the tender specifications, sovereignty will be evaluated across seven critical dimensions:

Strategic autonomy – Ensuring European control over critical digital infrastructure
Legal compliance – Adherence to EU regulations including GDPR and data protection standards
Operational control – Transparency in operations and management procedures
Environmental considerations – Commitment to sustainable and energy-efficient practices
Supply chain transparency – Clear visibility into component origins and manufacturing processes
Technological openness – Support for interoperability and avoidance of vendor lock-in
Security standards – Robust protection against cyber threats and unauthorized access

Catalyzing the European Cloud Market

The Commission envisions this contract as more than just a service procurement—it’s designed to be “a reference point for cloud providers and a catalyst for the growth of the EU cloud market, especially in the public sector.” This strategic move aims to stimulate investment in European cloud infrastructure and encourage the development of homegrown alternatives to dominant US hyperscalers.

The timing of this initiative reflects growing concerns about digital sovereignty across European governments. Many public sector organizations currently rely heavily on US cloud providers, making European data subject to the US CLOUD Act. This legislation enables the US government to request access to data stored with American companies, regardless of where the data is physically located.

Industry Response and Market Implications

While major European cloud providers like OVHcloud have been cautious in their public statements, industry leaders recognize the significance of this development. OVHcloud CEO Octave Klaba commented during a recent earnings call that “It takes time, but we’re happy to see the market is moving in the right direction.”

The three dominant US hyperscalers—Google, Amazon Web Services, and Microsoft—have all implemented various measures to address European sovereignty concerns. However, despite these efforts, data stored with these providers likely remains subject to the CLOUD Act, creating ongoing tension between convenience and sovereignty for European organizations.

Looking Ahead: Award Timeline and Future Impact

The contract award is expected between December 2025 and February 2026, marking a crucial milestone in Europe’s digital independence journey. This initiative could potentially reshape the European cloud landscape, encouraging greater competition and innovation while reducing reliance on foreign technology providers.

As European institutions increasingly migrate to digital platforms, this sovereign cloud framework may establish a blueprint for future public sector cloud adoption across member states. The success of this initiative could influence how other regions approach cloud sovereignty and data protection in an increasingly interconnected digital world.

For those interested in the official announcement and detailed specifications, the European Commission has published comprehensive information about the tender on their official news portal.