EU Evaluates Limits on Foreign Cloud Providers for Sensitive Government Information

The European Union is evaluating potential rules that would limit its member states’ reliance on U.S.-based cloud service providers for handling sensitive government data. According to sources familiar with ongoing discussions, the European Commission plans to introduce a ‘Tech Sovereignty Package’ on May 27, aimed at strengthening the EU’s digital independence. Key proposals include designating certain sectors—such as financial, judicial, and health data—that would require storage and processing within European cloud infrastructure. While the restrictions would not completely ban U.S. cloud companies from government contracts, they could significantly limit their role in managing sensitive public-sector data. Officials emphasized that these discussions are preliminary and not yet finalized. The move reflects growing concerns over privacy, national security, and reliance on non-EU technology providers, particularly in light of increasing geopolitical uncertainty and the legal authority of U.S. agencies over cloud-stored data under laws like the Cloud Act. Observers note that implementing these measures could pose challenges due to the lack of robust European alternatives to major U.S. cloud providers, but advocates argue that establishing sovereign cloud infrastructure is essential for long-term digital security and autonomy.