US tech giants warn Europe cloud sovereignty push could cost billions
Summarised from 2 outlets · Updated 15 Oct, 19:32 · Archive
US technology companies argue European plans to reduce reliance on American cloud providers could cost between €115 billion and €233 billion.
A report commissioned by the Computer and Communications Industry Association (CCIA), which represents major American technology companies including Amazon, Google and Meta, warns that European cloud sovereignty plans could cost €115 billion over the next decade. The paper, produced by the European Center for International Political Economy (ECIPE), specifically addresses the Cloud and AI Development Act. This is substantially higher than the European Commission's previous estimate of €18 billion over ten years.
The report splits projected costs between the public sector, estimated at €33 billion including governments and public agencies, and the private sector at €80 billion, covering critical infrastructure such as banking, healthcare, energy and transportation. The ECIPE analysis warns that restricting European cloud providers would increase operating costs, force customers to migrate workloads and require substantial software redevelopment. Depending on how intensely the EU pursues tech sovereignty, the estimate could rise to €233 billion in higher-end scenarios.
The CCIA is lobbying European policymakers to assess sovereignty based on actual risks rather than the nationality of technology vendors. The group's commercial interest in maintaining access to the European market is significant, given the major stakes involved for its members.
How it is being reported
- Tech giants warn Europe ditching their cloud services could cost billions — but then they would say thatEuropean Commission said a sovereign switch could cost €18 billion over 10 years – lobbying group projects €115-233 billion.TechRadar · 15 Oct, 19:20
- US tech giants warn Europe that ditching US tech giants could cost €115BAmazon, Google, Meta among members of lobby group funding dire warnings over cloud sovereignty plansThe Register · 14 Oct, 13:45
In this story: Amazon · Google · Meta · European Commission · CCIA · Europe
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