"European spending on sovereign cloud infrastructure services is forecast to more than triple from 2025 to 2027 as geopolitical tension drives investment in homegrown services, according to Gartner. Worldwide sovereign cloud spending is forecast to hit $80 billion in 2026, up 35.6 percent from 2025. The Middle East and Africa (89 percent growth), Mature Asia/Pacific (87 percent growth), and Europe (83 percent growth) are projected to lead, while the US (29 percent growth) and China (26 percent growth) are growing at a more modest rate."
"European concerns over reliance on the US hyperscalers stem from the US CLOUD Act of 2018, which allows American authorities to compel US-based tech companies to provide requested data, regardless of where that data is stored globally. Trade and geopolitical tensions between Europe and the US since President Trump return to power intensified these worries, with customers fearing the unpredictable US president could order hyperscalers to halt services to specific customers."
"Karim Khan, the International Criminal Court (ICC) chief prosecutor, was among those sanctioned by the US over efforts to prosecute Israeli officials, including Israeli Prime Minister Benjamin Netanyahu, following an investigation of war crimes and crimes against humanity. Khan later had access to Microsoft services temporarily cut. A spokesperson for Microsoft said it had not cut services to the ICC as a whole - yet onlookers worried the two issues were linked."
Gartner forecasts worldwide sovereign cloud spending to reach $80 billion in 2026, a 35.6% increase from 2025. The Middle East and Africa, Mature Asia/Pacific, and Europe are projected to lead growth with 89%, 87%, and 83% increases respectively, while the US and China grow more modestly at 29% and 26%. Europe is expected to grow from $6.9 billion in 2025 and more than triple by 2027, driven by concerns over reliance on US hyperscalers and the US CLOUD Act of 2018. High-profile incidents, such as temporary service restrictions affecting ICC access to Microsoft services, and adoption of alternatives like OpenDesk, reinforce moves toward homegrown sovereign cloud services. Geopolitical tensions are a significant factor in European investment decisions.
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