European tech sovereignty is at a crossroads. Twenty-four executives from CISPE (Cloud Infrastructure Service Providers in Europe) have signed an open letter to European Commission EVP for Tech Sovereignty Henna Virkkunen, demanding that the upcoming Cloud and AI Development Act embed genuine sovereignty principles rather than measures that entrench hyperscaler dominance.
Key Takeaways
- 24 European cloud and digital service provider CEOs signed an open letter to EU leadership on tech sovereignty
- The letter argues sovereignty must mean control, not merely having an EU presence
- Protection from extraterritorial laws like the US CLOUD Act is central to the sovereignty debate
- Political urgency increased following the Trump administration taking office
- CISPE coordinated the effort to shape the Cloud and AI Development Act
What European Tech Sovereignty Really Means
European tech sovereignty has become a rallying cry across the continent, but the term means different things to different stakeholders. The CISPE letter makes a critical distinction: true sovereignty is defined by control over data and infrastructure, not simply by having a European office or data center. This distinction matters enormously. A US hyperscaler with a European subsidiary can still be compelled by American authorities to hand over data under the CLOUD Act, a US law that allows federal agencies to demand information from American companies regardless of where that data is physically stored. For European governments and enterprises seeking genuine autonomy, this represents a fundamental vulnerability.
The 24 CEOs argue that upcoming EU legislation must prioritize this kind of structural independence. Without it, European tech sovereignty remains a hollow concept—a marketing phrase rather than a meaningful shift in power and control. The letter’s timing reflects accelerated European appetite for reducing dependence on American tech infrastructure, particularly following the Trump administration’s return to office.
Why the Cloud and AI Development Act Matters Now
The Cloud and AI Development Act represents a critical moment for European digital autonomy. The legislation will shape how European cloud infrastructure develops over the next decade, determining whether the continent builds genuine alternatives to American hyperscalers or simply creates regulatory theater that leaves real power unchanged. The CISPE letter is essentially a warning: get this right, or entrench American dominance for another generation.
The political stakes have risen sharply. A return to a more protectionist US administration has focused European minds on what sovereignty actually requires—not just regulatory compliance or data localization requirements, but fundamental control over the infrastructure and decision-making that powers the digital economy. European policymakers are listening, but the question is whether they will act on these warnings or settle for measures that look tough but change little in practice.
The Hyperscaler Problem in European Tech Sovereignty
European tech sovereignty faces a structural problem: hyperscalers—companies like AWS, Microsoft Azure, and Google Cloud—dominate European cloud infrastructure despite the continent’s stated commitment to digital autonomy. These companies are not European. They answer to American shareholders and American law. The CISPE letter challenges the assumption that simply regulating hyperscalers more strictly will solve this problem. Regulation alone cannot override extraterritorial legal claims or shift fundamental control.
The alternative is to build and support genuinely European cloud providers with the scale and capability to compete. This is harder, more expensive, and politically contentious—but the CISPE signatories argue it is the only way to achieve real sovereignty. Without it, European enterprises remain dependent on American infrastructure providers, regardless of how many EU compliance boxes those providers tick.
What Happens Next for European Tech Sovereignty
The open letter is a public plea to EU leadership to embed genuine sovereignty principles into the Cloud and AI Development Act before it is finalized. Whether that plea succeeds depends on political will and the willingness of European governments to invest in and protect domestic alternatives. The CISPE effort signals that European cloud providers are organized and vocal about what they need. The question is whether EU policymakers will prioritize long-term strategic autonomy over short-term regulatory convenience.
Is European tech sovereignty actually achievable?
Genuine European tech sovereignty is achievable but requires sustained investment, regulatory protection, and political commitment to support European alternatives even when American hyperscalers offer cheaper or more mature solutions. The CISPE letter argues that the Cloud and AI Development Act is the moment to commit to this path. Without it, the window may close.
What does the CLOUD Act have to do with European tech sovereignty?
The US CLOUD Act allows American federal agencies to compel American companies to provide data to US authorities, regardless of where that data is stored geographically. This means a European enterprise using an American cloud provider can have its data handed over to US law enforcement without European judicial oversight. This extraterritorial reach is precisely why the CISPE CEOs argue that true European tech sovereignty requires infrastructure not subject to US legal jurisdiction.
Why did CISPE send this letter now?
The timing reflects accelerated European concern about digital autonomy following the Trump administration’s return to office. European policymakers recognize that the geopolitical environment has shifted, and the window to build genuine alternatives to American hyperscalers may be closing. The Cloud and AI Development Act represents a critical opportunity to embed sovereignty principles into EU law before it is too late.
The CISPE letter is a wake-up call. European tech sovereignty is not a technical problem with a regulatory solution—it is a strategic choice about who controls the digital infrastructure that powers the continent’s economy. The Cloud and AI Development Act will determine whether Europe makes that choice or defaults to American dominance dressed up in European compliance clothing.
Edited by the All Things Geek team.
Source: TechRadar
