Europe Shifts from U.S. Tech Giants to Local Solutions for Data Sovereignty

April 23, 2026
Europe Shifts from U.S. Tech Giants to Local Solutions for Data Sovereignty
  • Europe is accelerating a shift away from U.S.-based tech providers for critical data infrastructure, with Germany and Denmark moving toward local or open-source solutions to bolster sovereignty.

  • This move centers on data ownership and sovereignty, aiming to shield European data from potential access by non-European authorities under laws like the Cloud Act.

  • Germany and Denmark are leading by example, as Schleswig-Holstein transfers 30,000 government workstations from Microsoft and Denmark adopts LibreOffice, signaling a regional trend toward sovereignty.

  • France is planning for Scaleway to secure health records for tens of millions of citizens, with the platform expected to be operational between late 2026 and early 2027.

  • Scaleway was chosen after evaluating more than 350 technical criteria and will host the nation’s health data, reinforcing a shift to sovereign cloud providers.

  • France selected Scaleway, a subsidiary of Iliad, to host the Health Data Hub, replacing Microsoft Azure to strengthen data sovereignty for health data used in research.

  • The Health Data Hub, which includes a copy of the SNDS, is being migrated from Microsoft to Scaleway amid concerns about U.S. data access under American law.

  • Hosting health data in France will require HDS certification, GDPR compliance, and ongoing CNIL oversight, underscoring the need for a trusted European-controlled infrastructure.

  • Keypoints

  • The debate over foreign access to European data intensified after a 2023-2024 French Senate inquiry, where Microsoft acknowledged potential access by U.S. authorities even if data is stored in France.

  • France’s 2019 Azure award faced criticism over non-competitive tendering and concerns about U.S. extraterritorial reach; subsequent SecNumCloud rules and a 2024 law push sensitive data to sovereign infrastructure.

  • In testimony, Microsoft conceded it could not block a U.S. injunction targeting French citizens’ data, highlighting the legal risks that spurred the Scaleway move.

Summary based on 8 sources


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