Dave Cottlehuber, the founder of SkunkWerks, a small tech infrastructure firm in Austria, says he has been moving the company’s few servers and databases away from US providers to European services since the start of the year. “First and foremost, it’s about values,” Cottlehuber says. “For me, privacy is a right not a privilege.” Cottlehuber says the decision to move is easier for a small business such as his, but he argues it removes some taxes that are paid to the Trump administration. “The best thing I can do is to remove that small contribution of mine, and also at the same time, make sure that my customers’ privacy is respected and preserved,” Cottlehuber says.
Steffen Schmidt, the CEO of Medicusdata, a company that provides text-to-speech services to doctors and hospitals in Europe, says that having data in Europe has always “been a must,” but his customers have been asking for more in recent weeks. “Since the beginning of 2025, in addition to data residency guarantees, customers have actively asked us to use cloud providers that are natively European companies,” Schmidt says, adding that some of his services have been moved to Nöbauer’s Exoscale.
Harry Staight, a spokesperson for AWS, says it is “not accurate” that customers are moving from AWS to EU alternatives. “Our customers have control over where they store their data and how it is encrypted, and we make the AWS Cloud sovereign-by-design,” Straight says. “AWS services support encryption with customer managed keys that are inaccessible to AWS, which means customers have complete control of who accesses their data.” Staight says the membership of the PCLOB “does not impact” the agreements around EU-US data sharing and that the CLOUD Act has “additional safeguards for cloud content.” Google and Microsoft declined to comment.
The potential shift away from US tech firms is not just linked to cloud providers. Since January 15, visitors to the European Alternatives website increased more than 1,200 percent. The site lists everything from music streaming services to DDoS protection tools, says Marko Saric, a cofounder of European cloud analytics service Plausible. “We can certainly feel that something is going on,” Saric says, claiming that during the first 18 days of March the company has “beaten” the net recurring revenue growth it saw in January and February. “This is organic growth which cannot be explained by any seasonality or our activities,” he says.
While there are signs of movement, the impact is likely to be small—at least for now. Around the world, governments and businesses use multiple cloud services—such as authentication measures, hosting, data storage, and increasingly data centers providing AI processing—from the big three cloud and tech service providers. Cottlehuber says that, for large businesses, it may take many months, if not longer, to consider what needs to be moved, the risks involved, plus actually changing systems. “What happens if you have a hundred petabytes of storage, it’s going to take years to move over the internet,” he says.
For years, European companies have struggled to compete with the likes of Google, Microsoft, and Amazon’s cloud services and technical infrastructure, which make billions every year. It may also be difficult to find similar services on the scale of those provided by alternative European cloud firms.
“If you are deep into the hyperscaler cloud ecosystem, you’ll struggle to find equivalent services elsewhere,” says Bert Hubert, an entrepreneur and former government regulator, who says he has heard of multiple new cloud migrations to US firms being put on hold or reconsidered. Hubert has argued that it is no longer “safe” for European governments to be moved to US clouds and that European alternatives can’t properly compete. “We sell a lot of fine wood here in Europe. But not that much furniture,” he says. However, that too could change.
Schaake, the former member of the European Parliament, says a combination of new investments, a different approach to buying public services, and a Europe-first approach or investing in a European technology stack could help to stimulate any wider moves on the continent. “The dramatic shift of the Trump administration is very tangible,” Schaake says. “The idea that anything could happen and that Europe should fend for itself is clear. Now we need to see the same kind of pace and leadership that we see with defense to actually turn this into meaningful action.”
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