
Businesses based in the U.K. have a message for U.S.-based technology providers: We don’t trust you and we’re tired of buying your services. So says a new report based on a recent survey of over 1,000 IT leaders based in the U.K.
The report, conducted by Civo, a U.K.-based cloud native hosting firm, found that 61% of U.K. IT leaders say data sovereignty is a strategic priority for their organization. Remarkably, 45% of these leader are considering cloud repatriation projects, which suggests that rising discomfort in the U.K. with American hyperscalers has become a driving force.
Artificial intelligence is a particularly sensitive sector because it’s so data intensive; any U.S. cloud platform that offers AI services ingests enormous levels of client data. The report noted that 67% of respondents agreed they’d only use AI services where there is absolute certainty they own data inputs and outputs.
“People are more alert than ever to just how valuable their data is, and it’s been astonishing how quickly cloud repatriation and sovereignty have become leading strategic considerations for IT leaders,” said Mark Boost, CEO of Civo. “The market is crying out for greater visibility over where data is stored, used, and transferred, and at present, U.S. providers are failing to meet that demand.”
The white paper that details the report found that the recent trade war has intensified antagonistic feelings. Some 60% of IT leaders say the U.K. government should stop buying U.S. cloud service in the wake of new tariffs.
Furthermore, this frustration goes beyond the U.K. As noted in the report, French Digital Minister Clara Chappaz, speaking at an event on digital sovereignty, declared: “In a world dominated by predators…Europe must work as a pack…and retaliate against the idiotic trade war.”
There’s a growing European concern with what Chappaz referred to as “sovereignty washing.” In this practice, American hyperscalers form partnerships with EU tech companies to position themselves as more in tune with European businesses. She warned EU businesses that US companies now control as much as 80% of the European cloud market.
Particularly concerning for European customers of U.S. cloud companies is the Cloud Act, a U.S. federal law enacted in 2018. This legislation is intended to allow data access for law enforcement, but in practice it allows U.S. service providers to give up users’ data under U.S. legal authority—a real blow to European sovereignty.
“For our public institutions, the message couldn’t be clearer,” said Boost. “Legislation like the CLOUD Act means that at any time, providers based in the U.S. may have to share users’ data, regardless of where in the world that user is based or where their data is stored.”
As an additional sign of unease about this across Europe, in March the Dutch Parliament requested that the national government create a sovereign Dutch cloud platform.
In sum, frustration with U.S.-based tech has risen to the point that Europeans will start actively working to find alternatives to U.S. providers. The report noted that 82% would consider switching from Big Tech to gain more control over data location and governance.
As one report respondent put it, “Big Tech has misused data in the past, and therefore has proved it cannot be fully trusted.”