Christian Sädtler
Author
Christian Sädtler
Technology Strategist

April 8, 2025

Why the European Cloud Matters More Than Ever

In times of increasing cyber threats, geopolitical tensions, and growing awareness of digital sovereignty, many European companies are asking themselves: Who actually controls our data – and where is it stored?

While U.S. giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud currently hold around 72% of the European market share (as of 2024), there is a rising interest in cloud providers that are based in the EU and operate their data centers exclusively in Europe. The reasons are clear: GDPR compliance, protection from the U.S. CLOUD Act, clear legal frameworks, and a growing need for digital self-determination.

But which European providers are truly relevant today – and what role can they play in the global market? In this article, we present three leading providers that impress with innovative concepts, technological expertise, and a clear European focus.

1. OVHcloud (France) – Europe’s Cloud Pioneer on an Expansion Course

OVHcloud is not only the largest European cloud provider but also one of the most internationally recognized players. Headquartered in France, the company was established early on as Europe’s answer to the hyperscalers – and has consistently pursued an independent and sustainable path.

With a presence in over 140 countries, in-house hardware development, its own data centers, and a comprehensive full-stack offering (public cloud, bare metal, Kubernetes, AI, managed databases, etc.), OVHcloud offers a compelling alternative for businesses seeking technological depth and data sovereignty. A standout feature is the strong focus on sustainable data centers, for example, through innovative water cooling technology.

When it comes to compliance, OVHcloud sets high standards: ISO certifications, BSI C5 attestation, and ANSSI SecNumCloud certification make the company one of the most trusted providers for public authorities and regulated industries.

Typical target customers: Public sector, healthcare, financial institutions, European SMEs
Technology profile: Broad IaaS/PaaS functionality, proprietary server technology, global reach
Strengths: Energy efficiency, data sovereignty, high compliance standards

2. IONOS Cloud (Germany) – The European Cloud for SMEs, Public Institutions, and Developers

IONOS Cloud, a subsidiary of German internet pioneer 1&1, has evolved far beyond being a traditional hosting provider. In recent years, the company has developed into a comprehensive cloud platform – with a strong focus on data protection, transparency, and legal certainty according to European standards.

The portfolio includes scalable virtual machines, databases, Kubernetes clusters, AI services, bare-metal servers, and private cloud solutions. Particularly noteworthy is the focus on startups and developers – for example, through dedicated support programs such as the IONOS Startup Program, which offers free resources and personal consulting.

All data centers are located within the EU – primarily in Germany – and are fully GDPR compliant. Access by non-European authorities is excluded.

Typical target customers: Small and medium-sized businesses, public institutions, SaaS providers
Technology profile: Based on OpenStack, Kubernetes-ready, developer-friendly
Strengths: Competitive pricing, transparent SLAs, full GDPR compliance

3. Scaleway (France) – The Developer Cloud with a Sustainability Focus

Scaleway, part of the French Iliad Group, is one of the most innovative and fastest-growing cloud providers in Europe. The company specifically targets startups, developers, and digital pioneers – offering a modern, API-driven platform, full data control, and high technological flexibility.

Its portfolio includes ARM-based virtual machines, Kubernetes, serverless platforms, GPU instances for AI applications, object storage, and bare-metal servers. Scaleway places strong emphasis on sustainable infrastructure – with energy-efficient data centers, innovative heat recovery solutions, and a clear commitment to open source.

All data centers are located exclusively in the EU. Scaleway deliberately rejects dependence on U.S. legal jurisdiction and strongly emphasizes its European value orientation.

Typical target customers: Startups, developers, SaaS providers, public sector with a focus on sustainability
Technology profile: Kubernetes, serverless, GPU cloud, ARM-based infrastructure
Strengths: Developer-centric, sustainable, open-source technology, full EU data control

Conclusion: European Cloud Solutions – Still Catching Up, But Increasingly Essential

The three leading European cloud providers – OVHcloud, IONOS Cloud, and Scaleway – represent a new, sovereign, and data privacy-focused cloud infrastructure for Europe. With a strong emphasis on compliance, customer proximity, and specialized applications, they offer compelling alternatives in areas such as public administration, healthcare, critical infrastructure, and sustainable digital transformation.

At the same time, we need to remain realistic: In terms of scalability, breadth of functionality, and global infrastructure, U.S. hyperscalers like AWS, Microsoft Azure, or Google Cloud are still clearly in the lead. They invest billions in new services, operate vast developer ecosystems, and often provide features that European providers (so far) cannot match.

However, amid growing regulations, geopolitical risks, and increasing demands for data sovereignty, European providers are becoming more relevant. For sensitive data, sovereign multi-cloud strategies, or GDPR-compliant projects, OVHcloud, IONOS, and Scaleway are no longer niche solutions – but are rapidly becoming strategic pillars of modern cloud architecture.

European cloud providers still lag behind in many areas, but they are becoming increasingly relevant in specific scenarios – and are actively contributing to securing Europe’s digital sovereignty.

Do you have further questions?

We’re here to help. Whether you’re looking for a data-sovereign alternative, need to meet regulatory requirements, or want to develop the right cloud strategy for your organization – we’ll work with you to find the optimal solution.

Contact us today – for a secure, future-ready cloud strategy based on European values.