The European Commission is reportedly in advanced negotiations to transition its cloud services from Microsoft Azure to OVHcloud, a leading French cloud provider. This strategic move underscores the EU's commitment to digital sovereignty, aiming to reduce reliance on non-European technology giants and bolster control over its digital infrastructure.
Background and Rationale
The impetus for this shift stems from concerns over data privacy and the influence of foreign laws on European data. A notable incident involved a U.S. executive order that led to the shutdown of Microsoft services for an employee of a European-based institution, highlighting vulnerabilities associated with dependence on U.S. tech companies. This event has intensified the EU's resolve to ensure that its institutions have greater autonomy over their digital assets.
The EuroStack initiative has been a significant advocate for this transition. Comprising over 80 European tech companies, including Airbus and OVHcloud, the coalition calls for "radical action" to diminish reliance on foreign-owned digital infrastructure. Their open letter to the European Commission emphasizes the need to foster homegrown alternatives to enhance the bloc's economic resilience and security. (techcrunch.com)
OVHcloud: A European Alternative
OVHcloud, headquartered in France, has positioned itself as a champion of digital sovereignty. The company emphasizes data sovereignty, technical sovereignty through open-source technologies, and operational sovereignty by managing its own data centers and servers. This approach ensures that customer data remains under European jurisdiction, free from extraterritorial influence. (blogs.vmware.com)
In March 2025, OVHcloud partnered with DEEP by POST Group to launch a sovereign cloud in Luxembourg. This collaboration aims to provide cloud services that meet the highest data protection and security standards, tailored to the Luxembourg market. (corporate.ovhcloud.com)
Microsoft's Response
In response to the EU's push for digital sovereignty, Microsoft has announced enhanced data protection measures for its European cloud customers. The company pledged that data stored by European customers would remain within Europe, governed by European law, and managed by local personnel. Additionally, any remote access by Microsoft engineers to European data systems will require approval and real-time monitoring by Europe-based staff. (reuters.com)
Furthermore, Microsoft has committed to expanding its European data center operations, planning to increase capacity by 40% over two years and expand to 16 countries. This initiative aims to bolster Europe's digital infrastructure and address concerns over data sovereignty. (apnews.com)
Implications and Future Outlook
The European Commission's potential shift to OVHcloud signifies a broader trend towards digital sovereignty within the EU. By prioritizing European cloud providers, the EU aims to reduce dependency on non-European tech giants and enhance control over its digital infrastructure.
This move could set a precedent for national public administrations to direct public procurement funds towards homegrown cloud providers, fostering a more competitive and secure digital ecosystem in Europe.
However, challenges remain. Ensuring that European cloud providers can meet the scalability, reliability, and security standards required by EU institutions is paramount. Additionally, navigating the complex regulatory landscape and addressing potential trade tensions with non-European tech companies will require careful consideration.
In conclusion, the European Commission's deliberations reflect a strategic effort to assert digital sovereignty and build a resilient, autonomous digital infrastructure. The outcome of these negotiations will likely have far-reaching implications for the European tech landscape and its global partnerships.
Source: Euractiv EXCLUSIVE: Commission eyes ditching Microsoft Azure for France's OVHcloud over digital sovereignty fears - Euractiv