EU Pushes for 'Made in Europe' Strategy Amid Cloud Infrastructure Challenges

European companies are grappling with critical decisions on cloud infrastructure strategies as EU industrial policies increasingly emphasize supporting domestic industry and reducing dependency on dominant US cloud providers. In 2025, three major US cloud companies controlled two-thirds of the EU cloud computing market, a dominance that raises concerns about structural dependence and operational risks amid mounting geopolitical and regulatory challenges.

The economic landscape is further complicated by trade tensions and stringent data sovereignty regulations, including the EU AI Act and the Digital Services Act, which collectively pressure European firms to optimize their cloud strategies. According to a report in Digital Business Magazin, adopting platform-agnostic infrastructures emerges as a pivotal approach, offering companies strategic flexibility to navigate these complexities without disruptive overhauls.

Parallel to these technological and business concerns, the EU is advancing a "Made in Europe" industrial policy. EU Industry Commissioner Séjourné, writing in Handelsblatt, advocates prioritizing European companies, especially those benefiting from public funding, to manufacture within Europe. This strategy aims to counteract the trend of national tariffs and subsidies that countries impose to protect their economies. Over 1,000 unions and companies, including German heavyweights Bosch and Thyssenkrupp Steel, back the initiative. However, it has drawn criticism from Sweden and the Czech Republic, who warn that such preferential treatment might deter investment and potentially harm the broader economy. The German government remains cautious on this approach.

Together, these developments underscore Europe's dual challenge: protecting and strengthening its industrial base while ensuring its companies can maneuver in a cloud-dominated digital economy increasingly shaped by external tech giants and complex regulations. The combination of regulatory pressure and the EU’s push for homegrown industry is driving companies to rethink infrastructure strategies and align them with broader economic sovereignty efforts.