Billions of euros are flooding the cloud computing sector in Europe… Mainly thanks to Amazon (AWS), Google and Microsoft. Investments occurring in the midst of a debate on the question of the “European sovereign cloud”, supposed to allow the storage and processing of data online without going through the American giants.
Why does the debate exist?
“Cloud” is a catch-all term for the method of storing data in large warehouses managed by external companies rather than on local computers managed internally. A “sovereign cloud” is based on the idea that a territory (region, country, regional space) has control over its data – where it is stored, how it is accessed, who supervises it.
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Currently, nearly 80% of the European cloud market for public services is controlled by three American groups, AWS, Google and Microsoft, while European alternatives struggle to stand out.
In this context, the European Commission seeks to help European companies capable of managing cloud infrastructures to develop, in order to host the most sensitive data, and provide choice in matters of data confidentiality.
Because legislation in the United States requires Amazon (AWS), Google, Microsoft and others to transmit data, even sensitive personal information, at the request of American security agencies.
These data transfers have repeatedly been deemed illegal under European law.
One of the main objectives of creating a “sovereign cloud” would involve offering “immunity against foreign jurisdictions that access the data of European citizens or companies under their national legislation – whether in the United States – United, in China or in another jurisdiction,” Francisco Mingorance, secretary general of CISPE, the organization responsible for defending the interests of the European “cloud” industry, told AFP.
What are European officials doing?
The French and German governments joined forces in 2019 to announce the Gaia-X initiative, a collaboration between businesses, civil servants and academics aimed at building a European data and technology infrastructure, although actors like Amazon and Microsoft are among its members.
If France “supports” the initiative, “other countries are not very favorable to it,” Ulrich Ahle, general director of Gaia-X, told AFP.
The French debate often goes beyond data concerns to promote a broader vision of sovereignty that involves the creation of European digital champions like OVH or Scaleway, capable of competing with American technology giants.
At the end of 2023, the European Commission announced an envelope of 1.2 billion euros in public funding, as part of an important project of common European interest (PIIEC), which “should make it possible to unlock 1.4 billion euros ‘additional private investment euros’ in order to move in this direction.
IPCEIs allow several European states to come together to finance the development of an industry in a sector considered essential at European level, while respecting European rules on business subsidies.
The one dedicated to the cloud brings together Germany, Spain, France, Hungary, Italy, the Netherlands and Poland, as well as 19 companies, including the operators Orange and Telefonica, the conglomerate Siemens, as well as Capgemini , OVH or Atos.
The EU is also developing a standard, but heated controversy engulfed the process after EU officials drafted a version that abandons a long-standing commitment to European sovereignty.
Is it sufficient ?
AWS announced at the end of May a giant investment of 15.7 billion euros over a period of ten years to increase the capacity of its data centers in Spain. Last month, a 7.8 billion euro investment in Germany was given the “sovereign” label.
“AWS et al are still trying to argue that server location is relevant. This is not the case,” Max Schrems, an activist for the protection of privacy, told AFP.
Large U.S. companies are experimenting with other ways around the problem, including creating European entities and partnerships that would be legally responsible for the data.
“They often say that this is their plan for the future, but to my knowledge, there is not yet a ‘solid’ system where this is done correctly,” estimates Max Schrems.
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