The story centers on Europe’s evolving transatlantic dynamics, weighing regulatory sovereignty against access to global cloud capabilities, with a focus on public‑private partnerships to navigate these changes.

Casper Klynge of Zscaler argues that sovereignty requirements are not zero‑sum and that European providers can still grow in targeted markets.

A key risk for firms is misalignment with European sovereignty rules, which could create hurdles in the European market.

Europe’s cloud market has expanded, but European providers still hold under 20% of the market, signaling continued reliance on US hyperscalers.

A sovereign cloud framework codified in late 2025 aims to help assess cloud provider compliance with EU rules and improve visibility into data transfers.

For businesses aiming to enter or expand in Europe, Zscaler sees opportunities driven by demand for services that connect users, cloud resources, and regulatory compliance.

The piece places frontier AI within Europe’s regulatory and geopolitical context, exploring how AI models fit into the sovereign cloud initiative.