Old habits can be hard to break. Across the EU and the UK, policymakers see dependence on American cloud platforms and AI systems as an unacceptable vulnerability. But early efforts to reduce reliance on U.S. tech providers have been difficult and expensive.
Concerns have intensified amid political tensions and the prospect that U.S. authorities could exert control over services operated by American firms. The possibility that critical digital infrastructure could be restricted, through sanctions or policy decisions, has moved from theoretical risk to an issue actively discussed in government circles.
Digital sovereignty is now a highly popular term in the EU. Initiatives span cloud infrastructure, semiconductors, AI, and open-source software. The European Commission is advancing policy frameworks to support domestic alternatives, while national governments are introducing their own programs to reduce reliance on U.S. providers.
US Dominance Across Sectors
The problem for EU enterprise customers is that a significant share of corporate IT spending is directed toward American vendors. Even more difficult: the EU systems using U.S. tech are remarkably widespread, supporting government, communications, healthcare, and financial services.
Early efforts to untangle this reliance are underway. France has begun limiting the use of certain U.S.-based collaboration tools in public administration, while the Netherlands and Germany are investing in local digital infrastructure and open-source alternatives. In the UK, a newly launched sovereign AI fund aims to support domestic startups and reduce dependence on foreign tech suppliers.
In Germany’s Schleswig-Holstein state, the public sector has begun migrating from widely used U.S. software to open-source solutions, replacing office applications and email systems, with a goal switching operating systems. The move has yielded measurable savings in licensing costs, but the transition has also exposed operational challenges. Early disruptions included limited access to communications systems and lowered productivity due to missing features and compatibility issues.
Amsterdam is pursuing a more gradual approach, emphasizing phased adoption and risk mitigation. Its plan targets partial replacement of U.S. cloud services by 2030, with a longer-term goal of hosting critical systems on European infrastructure. The city’s leadership has acknowledged that a sudden shift would be impractical given the extent of dependencies.
A Pragmatic Approach
Because decades of reliance on U.S. providers have created entrenched systems, replacing these systems requires not only new technology but also significant retraining and redevelopment. The absence of equally scaled European vendors further complicates the transition.
At the same time, European leaders are attempting to avoid repeating past mistakes. The region’s slower adoption of earlier internet technologies helped develop its current dependence. With AI emerging as the next defining technology, governments are attempting to support domestic firms in playing a larger role in AI development.
Full independence is likely neither realistic or even necessary. Instead, the pragmatic focus is shifting toward reducing exposure in critical areas like defense and financial systems. Building capacity in these sectors is viewed by many leaders as essential to maintaining economic and national security.
Open-source software, with its lower prices and greater flexibility, is emerging as a key component of this strategy. The European Commission has launched consultations aimed at strengthening open-source ecosystems, addressing funding gaps, and improving migration from research to real world deployment.
The transition faces an uphill battle. Costs are expected to run into the billions across the region, and the logistical risks are becoming clearer as pilot programs expand. Europe’s challenge is to refresh its digital infrastructure without major disruption along the way, a task that will only get harder as U.S.-based tech continues to rapidly evolve.
