European Companies Rush to Replace US Cloud Services After Court Ruling

Following a landmark European Court of Justice preliminary opinion questioning the validity of the EU-US Data Privacy Framework, companies across Europe are accelerating their migration to European cloud providers.

European Union flags representing EU data sovereignty

The European Court of Justice's preliminary opinion released last week has sent shockwaves through the tech industry, raising serious doubts about whether the EU-US Data Privacy Framework provides adequate protection for European citizens' data. In response, businesses across Europe are fast-tracking their plans to migrate from US cloud providers to European alternatives.

What the Court Said

In its preliminary opinion on Case C-446/24, the ECJ's Advocate General stated that US surveillance laws, particularly Section 702 of FISA and Executive Order 12333, continue to allow "bulk collection and access to personal data that goes beyond what is strictly necessary." The opinion suggests that the safeguards introduced by the Data Privacy Framework may not be sufficient to meet EU fundamental rights standards.

"The protections offered to EU citizens under US law remain fundamentally inadequate when compared to the guarantees provided under EU law, particularly regarding judicial remedies and proportionality."

While the final ruling is not expected for several months, the strongly worded opinion has prompted many organizations to reconsider their reliance on US-based cloud services.

Companies Taking Action

Major European corporations have announced plans to migrate critical workloads away from US hyperscalers. Deutsche Telekom confirmed it is expanding its partnership with OVHcloud to reduce dependence on AWS. French insurance group AXA announced a comprehensive review of its cloud strategy, with a focus on European providers.

The shift is particularly pronounced in regulated industries:

Compliance Alert

Organizations using US cloud providers for personal data of EU residents should consult their legal teams about the implications of this ruling and consider contingency plans.

European Cloud Providers See Surge in Demand

European cloud providers are reporting unprecedented demand following the ruling. Hetzner reported a 340% increase in enterprise inquiries in the week following the opinion. Scaleway has announced plans to open two new data centers to meet demand. Infomaniak reported its highest-ever sales month.

The European cloud industry body CISPE (Cloud Infrastructure Services Providers in Europe) welcomed the development, stating that European providers are "ready and capable of serving enterprise workloads at scale."

What This Means for Your Business

If your organization processes personal data of EU residents using US cloud services, you should take the following steps:

Recommended European Alternatives

For organizations looking to migrate, several European providers offer enterprise-grade services:

Find European Alternatives

Browse our alternatives directory to find European replacements for your current US services, or explore our cloud computing category for infrastructure options.

Who worked on this article

This article was written, edited and fact-checked by three members of our editorial team.

Marta Kowalczyk
Written by

Marta Kowalczyk

Senior Analyst, Infrastructure & Developer Tools · Warsaw, Poland

Covers hosting, developer tooling and the practical side of moving workloads to European providers.

Ingrid Halvorsen
Edited by

Ingrid Halvorsen

Managing Editor · Oslo, Norway

Runs the review process and decides when a page is ready to publish or needs another pass.

Daniel Brandt
Fact-checked by

Daniel Brandt

Privacy & Compliance Researcher · Berlin, Germany

Checks the compliance claims: where the company is established, where the data sits, and what the DPA actually says.

Read our editorial process for how we source, verify and update these pages.