Alternative Cloud Providers: EU vs US

By Jonathan Søholm-Boesen

April 23, 2025

Cloud ComputingData SovereigntyCompliance
Alternative Cloud Providers: EU vs US

Alternative Cloud Providers: EU vs US

In today's global digital landscape, the choice of cloud provider is no longer just a technical decision but also a strategic and regulatory one. As data sovereignty and privacy regulations evolve, the differences between European and American cloud providers become increasingly important for businesses.

The Cloud Market Landscape

The cloud computing market has traditionally been dominated by American tech giants like AWS, Microsoft Azure, and Google Cloud. Together, these hyperscalers control over 65% of the global cloud infrastructure market. However, European alternatives are gaining traction, offering distinct advantages particularly for EU-based organizations.

Data Sovereignty: A Key Differentiator

Data sovereignty—the concept that data is subject to the laws of the country in which it is stored—has become a crucial consideration for businesses worldwide.

US Cloud Providers and Data Access

American cloud providers, while technically advanced and scalable, operate under US laws that may allow government access to data:

  • The CLOUD Act enables US authorities to compel US-based companies to provide data regardless of where it's stored
  • Legal frameworks like FISA Section 702 allow surveillance of non-US citizens' data
  • Limited protection for EU citizens under the US Privacy Shield replacement

European Alternatives

European cloud providers offer a different approach:

  • Strict compliance with GDPR and other EU data protection regulations
  • Data remains within EU jurisdictions, reducing legal exposure
  • Implementation of Schrems II decision principles in data handling
  • Growing ecosystem of GAIA-X compatible providers

Compliance Considerations

Beyond data sovereignty, different regulatory compliance requirements affect cloud provider selection:

European Regulations

  • GDPR: Comprehensive data protection framework
  • NIS2 Directive: Enhanced cybersecurity requirements
  • Digital Operational Resilience Act (DORA): Financial sector IT resilience
  • Sector-specific regulations: Healthcare (e.g., MDR), finance, public sector

US Regulations

  • CCPA/CPRA: California's privacy regulations
  • HIPAA: Healthcare data protection
  • FedRAMP: US government cloud security standards
  • Industry-specific standards: PCI DSS, SOC 2, etc.

Technical and Strategic Differences

Beyond legal frameworks, European and American providers differ in several aspects:

US Cloud Strengths

  • Extensive global infrastructure
  • Advanced AI/ML capabilities
  • Vast ecosystem of services and integrations
  • Economies of scale leading to competitive pricing

European Cloud Advantages

  • Regional expertise and local support
  • Data residency guarantees
  • Alignment with EU digital sovereignty goals
  • Often better compliance with local regulations

Making the Right Choice

When selecting between EU and US-based cloud providers, organizations should consider:

  1. Data classification: What types of data will be stored and processed?
  2. Regulatory requirements: Which compliance frameworks apply to your organization?
  3. Operational geography: Where are your customers and operations located?
  4. Risk assessment: What are the implications of foreign government access to your data?
  5. Technical requirements: Do you need specific capabilities that might be advanced in US clouds?

Hybrid Approaches

Many organizations are adopting hybrid strategies:

  • Using EU providers for sensitive data and compliance-critical workloads
  • Leveraging US hyperscalers for compute-intensive or global-facing applications
  • Implementing multi-cloud architectures to maximize advantages from both worlds

European Privacy-Focused Alternatives

When considering digital sovereignty, it's important to look beyond infrastructure to the entire data stack. Analytics and monitoring tools from US providers often present similar data sovereignty challenges:

Analytics and Monitoring Tools

  • Infobits: A European alternative to Google Analytics, offering complete GDPR compliance with 100% data ownership
  • Infobits Error Tracking: A privacy-focused alternative to Sentry for error monitoring and reporting
  • Infobits Privacy Focus: Capture user interactions while maintaining full compliance with EU privacy regulations

These European solutions enable organizations to maintain full control over their analytics data while ensuring compliance with EU regulations.

European Cloud Provider Alternatives

When looking for European alternatives to major US cloud services, several providers offer compelling options:

Infrastructure & Compute

  • Scaleway: A French alternative to AWS and Google Cloud offering compute, storage, and managed services
  • OVHcloud: One of Europe's largest cloud providers with datacenters across the EU
  • Hetzner: German provider known for cost-effective dedicated servers and cloud instances
  • UpCloud: Finnish cloud provider focused on high-performance infrastructure

Content Delivery & Edge

  • Bunny.net: European alternative to Cloudflare for CDN, edge storage, and security
  • KeyCDN: Swiss-based content delivery network with global reach
  • G-Core Labs: Luxembourg-based provider of CDN and edge computing services

Storage & Database

  • Exoscale: Swiss cloud platform with S3-compatible object storage
  • Civo: UK-based Kubernetes platform and cloud services provider
  • Tresorit: Swiss-Hungarian secure cloud storage and file sharing solution

Email & Productivity

  • Proton Mail: Swiss-based encrypted email service as an alternative to Gmail and Outlook
  • Tutanota: German secure email provider with built-in encryption
  • Nextcloud: German alternative to Google Workspace and Microsoft 365 for file storage and collaboration

These providers not only help with regulatory compliance but often provide specialized regional expertise and support while maintaining competitive technical capabilities.

Conclusion

The choice between European and American cloud providers isn't simply a matter of technical capability—it represents a strategic decision about data governance, compliance, and digital sovereignty. As regulatory frameworks continue to evolve, organizations must carefully evaluate their specific needs and risk profiles when selecting cloud partners.

For European businesses in particular, the growing ecosystem of EU-based cloud providers offers compelling alternatives that may better align with both regulatory requirements and broader digital sovereignty goals.

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