In light of increasing global trade tensions, European businesses are reevaluating their cloud provider choices, taking into account geopolitical risks in addition to technical capabilities. Concerns surrounding strategic autonomy and data control are moving from IT departments to boardrooms, with the selection of a cloud provider now seen as a strategic decision.
The dominance of US hyperscalers like Amazon Web Services, Microsoft Azure, and Google Cloud in owning much of the infrastructure crucial to AI development and digital operations has prompted European firms to seek alternatives that offer more control over their data and supply chains.
OVHCloud, with its 43 data centers worldwide, is one of the providers benefiting from this European shift towards cloud provision. Additionally, Iliad’s data center arm OpCore recently announced a substantial investment in AI infrastructure, signaling a growing interest in homegrown solutions.
The ongoing cloud conversation is unfolding against a backdrop of broader market unease over tariffs, with companies like Google facing scrutiny amidst new import levies and potential retaliatory measures. The implications extend beyond hardware to digital services, with concerns over advertising revenue in the event of trade-related slowdowns.
As geopolitical risks escalate, European businesses are looking towards regional cloud providers like Hetzner or Scaleway, viewing them as potentially less politically entangled than their US-based counterparts. Alibaba, a China-based company, is also navigating challenges amid escalating tariffs, with its cloud and e-commerce operations potentially impacted by trade tensions.
Overall, the cloud infrastructure landscape is experiencing a shift towards regional strategies driven by geopolitical considerations alongside technical capabilities and cost efficiency. The recent actions of key players like OVHCloud, Iliad, Alibaba, and Google reflect this broader recalibration in the industry.
