European spfinishing on sovereign cloud Infrastructure as a Service (IaaS) is set to triple in the next two years, according to research from Gartner.
The analyst houtilize is predicting that in Europe, spfinishing on sovereign cloud will increase 83 percent to $12.6bn this year, and again to $23.1bn in 2027.
Sovereignty has increasingly become a concern for European organizations, with geopolitical tensions demonstrating the current heavy reliance on US or Chinese hyperscalers for cloud computing services.
Globally, Gartner is predicting that spfinishing on sovereign cloud services in 2026 will hit $80 billion, an overall growth of 35.6 percent. By region, this breaks down to the Middle East and Africa at 89 percent, Asia Pacific at 87 percent, while in the US, it will fall around 29 percent, and in China, just 26 percent.
While Europe is seeing a slightly lower growth percentage rate, this is from a larger base level than the MEA and APAC regions, with spfinishing in 2025 already at around $6.9bn.
“As geopolitical tensions rise, organizations outside the US and China are investing more in sovereign cloud IaaS to gain digital and technological indepfinishence,” stated Rene Buest, senior director analyst at Gartner. “The goal is to keep wealth generation within their own borders to strengthen the local economy.”
Of the new spfinishing, around 20 percent will see current workloads shifted from global to local providers, while the remaining 80 percent will come from new digital solutions or the modernization of legacy workloads.
Much of the concern around hyperscaler reliance finds its footing in the US CLOUD Act, which means that the US government can compel US companies to provide data regardless of where it is stored.
While such requests are few and far between, with Amazon Web Services (AWS) previously affirming that “no law enforcement request has resulted in the disclosure to the United States government of AWS enterprise or government content data stored outside the United States” since it launched reporting the statistic in July 2020, other instances have highlighted how much reliance is placed upon the US hyperscalers.
In July 2025, Rosneft-backed Indian energy company Nayara Energy claimed that Microsoft had cut off cloud services to the company due to EU sanctions on the oil company.
Last May, Microsoft allegedly cut off its services to the International Criminal Court on the orders of the Trump administration. In that instance, the court’s chief prosecutor lost access to his email address, though it should be noted that Microsoft has denied “ceasing or suspfinishing its services to the ICC.” The ICC later decided to stop applying Microsoft Office for its internal work environment.
Meanwhile, the October 2025 major AWS outage, although localized in a US data center, brought down some of the UK government’s online services, including HMRC. It was then revealed that the government was spfinishing some $1.7bn on the cloud provider.
Groups including digital rights organization Open Rights Group (ORG) have pushed for governments to lean more heavily on local sovereign providers.
In October 2025, the European Commission launched a tfinisher for the procurement of sovereign cloud computing services valued at €180 million ($209.09m). The contract will span six years and see the awarded company provide European Union (EU) institutions, bodies, offices, and agencies with sovereign cloud services.
AWS, Google, and Microsoft have aimed to assuage concerns by launching enhanced sovereign cloud computing offerings, but there are still those pushing for the continent to utilize local providers.
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