European Companies Shift Cloud Provider Choices Amid U.S.-EU Trade Tensions, OVHCloud CEO Notes

Amid the escalating trade war, European companies are reassessing their cloud provider choices, according to OVHCloud CEO Benjamin Revcolevschi. The company, a prominent French cloud computing service, is observing a shift in the priorities of both private corporations and public organizations in Europe. What was once a purely technical decision is now being viewed through a broader strategic lens, with concerns about strategic autonomy and geopolitical risks coming to the forefront. Revcolevschi highlighted this trend in a recent quarterly earnings statement, saying, "In the current geopolitical context, we are seeing a shift in the concerns of private companies and public organizations in Europe. Questions of strategic autonomy are now on CEOs' agendas." This shift underscores the growing awareness that the choice of a cloud provider is not just about performance and cost but also about long-term reliability and independence. The European market for cloud computing is currently dominated by three U.S.-based hyperscalers: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These companies offer robust and widely used services, but their stronghold is being challenged by the rising tide of European nationalism and the desire for self-sufficiency in digital infrastructure. One notable example of this trend is Iliad, a major telecommunications company in France, which plans to invest 3 billion euros (approximately $3.4 billion) in AI infrastructure, including computing power and data centers. Iliad’s investment, through its subsidiary OpCore, which operates 13 data centers, underscores the growing importance of local control over critical digital resources. This move is expected to bolster European capabilities and reduce reliance on American cloud services. The shift towards more local and controlled digital solutions extends beyond Iliad and is likely to influence the strategic decisions of other European companies and public institutions. As questions of data sovereignty and security become more pressing, the preference for European cloud providers is expected to grow. This trend could lead to a more balanced and diversified cloud landscape in Europe, potentially fostering innovation and competition on a global scale. ($1 = 0.8802 euros)