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Lobby-funded study warns EU cloud sovereignty rules could cost €115bn

The Register ·

A study commissioned by CCIA Europe says the EU’s proposed Cloud and AI Development Act could cost Europe €115 billion over ten years if it reduces reliance on US cloud providers. The estimate is being used to argue against broad sovereignty requirements, but the study was funded by a lobby group whose members include major US technology companies with interests in the European cloud market.

The study estimates €33.3 billion in direct public-sector costs and up to €80 billion for private firms, assuming sovereignty rules cover a quarter of cloud workloads in essential industries. It says software redevelopment would account for 69 per cent of the projected costs and estimates Luxembourg would face the highest cost per worker, at €1,711 over a decade. The EU Commission’s upper estimate is €18 billion, while CCIA is urging governments to limit rules to sensitive workloads.

  • Lobby group study estimates €115 billion in costs over ten years.
  • The €80 billion private-sector figure depends on a scenario.
  • The study’s funders include major US cloud companies.

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Cloud services let organisations store data and run software on computing systems managed by providers. Many European public bodies and businesses use services from large US technology companies. The EU is considering a Cloud and AI Development Act, which could set rules aimed at giving Europe more control over important digital services and data.

CCIA Europe, a trade group whose members include major US technology companies, commissioned the study behind the €115 billion estimate. It counts possible costs for public services and private firms if sovereignty rules cover some cloud use, including the work involved in adapting software. The European Commission has put forward a lower upper estimate of €18 billion, and the figures matter to debates over the scope and cost of the proposed rules.

Both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Broad cloud-sovereignty requirements could impose substantial costs on public services and businesses, especially if organisations must redevelop software to move workloads. The study’s €115 billion estimate depends on assumptions about how widely rules apply, but it highlights a risk that extensive mandates could divert money and expertise from other priorities; limiting requirements to sensitive workloads could protect security while containing costs.

The case against

The estimate comes from a study funded by a lobby group whose members include major US cloud providers, so its assumptions and framing merit scrutiny. Supporters of stronger sovereignty rules could argue that reducing dependence on foreign providers may improve control over sensitive data and resilience, and that these benefits are not captured by a cost estimate; the Commission’s much lower upper estimate also suggests the projected burden is contested.

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Originally published by The Register as “US tech giants warn Europe that ditching US tech giants could cost €115B”.

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