Europe’s efforts to regain control over its cloud infrastructure are running up against some cold, hard facts. Despite regulatory moves, strict privacy frameworks, and various regional projects, U.S. tech giants still dominate the European cloud ecosystem.
Here’s what the latest Synergy Research data shows: European providers now account for just 15% of their home market—a sharp decline from 29% in 2017. The numbers don’t lie. Local players are losing serious ground. Even though local players like SAP and Deutsche Telekom have grown revenues, their influence is shrinking. That’s because the market itself has expanded sixfold, now valued at over €61 billion, with Amazon, Microsoft, and Google hoarding 70 percent of that share.
The challenge goes beyond size. US providers are pouring nearly €10 billion into European data center infrastructure every quarter. That level of capital expenditure leaves European firms with few realistic options, even as frustration grows over data privacy and geopolitical dependence. Calls for a sovereign European cloud echo louder each year, yet tangible progress remains limited.
Europe trying to haul all its tech and data back from the US? Technically possible, sure, but in practice, it’s a logistical nightmare. The costs would be off the charts, and the existing infrastructure is already fused tightly with American platforms. Customer demands, established ecosystems—none of that’s easy to unwind. Local providers? Most have carved out specialty roles or just leaned into partnerships with the big US players, rather than trying to compete directly.
Meanwhile, the AI boom is just cranking up the pressure. GenAI tools and GPU-as-a-Service are exploding in popularity, but you need massive resources and global reach to keep up. So, yeah, Europe’s still a significant market, but as far as actually competing at scale? That ship’s pretty much sailed.
