Report: EU considers restricting the use of US cloud platforms for handling sensitive government data

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The EU is evaluating the introduction of regulations to restrict government agencies in member states from using American cloud service providers to handle sensitive data. If implemented, American tech giants such as Amazon, Microsoft, and Google will face substantial restrictions on their cloud business in the European public sector.

According to media reports, the European Commission plans to release a "digital sovereignty package" on May 27, with one of its core topics being to restrict foreign cloud platforms from accessing sensitive public sector data. Two unnamed European Commission officials indicated that related discussions are ongoing and not yet finalized.

Media, citing informed officials, reported that the discussions focus on financial, judicial, and medical data sectors. Data handled by government and public sector agencies in these areas may be required to operate on high-level sovereign cloud infrastructure. The plan does not intend to completely ban foreign companies from participating in government cloud contracts but will restrict the scope based on the sensitivity of the data.

This move is the EU’s latest effort to promote digital sovereignty amid increasingly tense transatlantic relations and sends a clear warning to US cloud service providers that dominate Europe’s public sector market.

Core content: Defining sensitive areas that "must be hosted locally"

According to reports quoting European Commission officials, the "core idea of the plan is to define which sectors must rely on European cloud infrastructure for data hosting," which will affect cloud solution providers from the US and other third countries.

"US cloud service providers may face restrictions in several sensitive and strategic sectors within public institutions of EU member states," one official said.

It is noteworthy that the plan currently targets only government and public sector agencies and does not cover private sector enterprises or regulate corporate cloud usage.

A European Commission spokesperson stated that the plan "concerns Europe’s awakening and self-strengthening" and will "expand the development opportunities of sovereign clouds, including through public procurement, and support the entry of more diversified cloud computing and AI service providers into the market."

Legislative pathway: plan requires approval by 27 countries

Procedurally, after the "digital sovereignty package" is proposed by the European Commission, it must be approved by all 27 member states to take effect.

The package will cover the "Cloud and Artificial Intelligence Development Act" (CADA) and the "Chips Act 2.0," aiming to promote the formation of localized sovereign solutions in Europe’s cloud and chip sectors.

Due to multinational coordination and legislative cycles, the final implementation time of the relevant rules remains uncertain, and officials have made it clear that internal discussions are still ongoing.

Background: The risk of digital dependency alerts Europe

Currently, EU member state public sector agencies, provided they meet relevant regulatory requirements, may use foreign cloud platforms to handle highly sensitive information, including medical and financial data, with US companies dominating thanks to industry advantages.

However, as transatlantic relations have continued to cool in recent months, scrutiny of this dependency has intensified. According to the US CLOUD Act passed in 2018, American law enforcement agencies can require US companies to provide user data, regardless of where it is stored.

According to media reports from February this year, multiple European governments have indicated they are exploring localized and open-source alternatives to US tech platforms and increasing their budgets for digital sovereignty. In January, France announced the launch of its independently-developed government video conferencing tool Visio, planning to roll it out to all national service agencies by 2027 to replace US tools such as Microsoft Teams and Zoom.

In April this year, the European Commission awarded a €180 million procurement contract to four European sovereign cloud projects to provide services for EU agencies and organizations. One project involves a joint venture between French aerospace company Thales and Google Cloud—highlighting how, in promoting digital sovereignty, Europe seeks a balance between localization needs and the existing capabilities of US tech giants.

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