Report Warns EU Cloud Sovereignty Push May Favor National Providers

The analysis drew on 8,725 cloud-related procurement contracts signed between 2018 and 2025. ECIPE found that European cloud procurement was already heavily concentrated along national lines before sovereignty became a prominent policy goal, with almost all contracts going to domestic providers and minimal cross-border competition within the bloc.

The report also points out that many of these domestic awards went to prime contractors that depend on infrastructure supplied by large hyperscale operators. In such cases, ECIPE argues, sovereignty is linked to the nationality of the operator rather than to the underlying infrastructure on which the service runs.

According to ECIPE, part of the issue is a conceptual overlap in how cloud sovereignty is understood. One interpretation treats it as a matter of security and resilience, focused on protecting data and managing risk, where sovereignty means users retain choice over the provider and design of their cloud services.

Microsoft is moving its Family, Premium, and Pro plans from 1 TB per user to a shared 2 TB pool, with the change taking effect on renewals after May 2, 2027.