European Firms Reconsider US Cloud Services Amid Trump Backlash

A global backlash against the second Donald Trump administration has led to a growing trend of European companies reevaluating their use of American cloud services. The move comes as concerns over privacy and data access fears under the Trump administration have sparked uncertainty among organizations.

Dominant US tech giants, including Google Cloud, Microsoft Azure, and Amazon Web Services (AWS), host vast portions of the internet and support thousands of businesses worldwide. However, some European companies are reconsidering their reliance on these companies’ cloud services, citing concerns over data security and potential risks to European interests.

“We have more demand from across Europe,” says Mathias Nöbauer, CEO of Swiss-based hosting provider Exoscale. “Some customers were very explicit about wanting to move away from US hyperscalers because of the Trump administration’s stance on issues like Greenland.”

Similar concerns have been raised over the EU-US data-sharing agreement, which has faced challenges in previous versions being struck down by European courts. The current agreement was also impacted by the membership of the Public Consultation on Law Enforcement Technology (PCLOB), with some arguing that it did not provide sufficient safeguards.

Despite these concerns, Harry Straight from AWS claims that customers have control over their data and encryption, and that the company provides robust security measures to protect sensitive information. However, this message may not be convincing for all organizations, especially those concerned about the Trump administration’s stance on issues like data sharing.

The trend towards a more European approach is already gaining momentum, with increased interest in alternative cloud services and tech solutions provided by European firms. According to Marko Saric from Plausible, a cofounder of European cloud analytics service, visitors to the European Alternatives website have seen a significant increase in recent weeks.

While the impact of this trend is likely to be small for now, it marks an important step towards European companies taking greater control over their data and technology. As Steffen Schmidt from Medicusdata notes, having data in Europe has always been crucial, and it’s essential that organizations prioritize their customers’ privacy and security.

The shift towards a more European approach could also lead to new investments, a different approach to buying public services, and a focus on developing a European technology stack. According to former member of the European Parliament Bert Hubert, this is crucial for stimulating meaningful action and ensuring that Europe can compete with global tech giants like Google, Microsoft, and Amazon.

As Schaake notes, “The dramatic shift of the Trump administration is very tangible. Now we need to see the same kind of pace and leadership that we see with defense to actually turn this into meaningful action.”

Source: https://www.wired.com/story/trump-us-cloud-services-europe