The Good Tech Companies - Sovereignty in the Cloud: Europe's Most Reliable Path Forward

Episode Date: November 26, 2025

This story was originally published on HackerNoon at: https://hackernoon.com/sovereignty-in-the-cloud-europes-most-reliable-path-forward. Europe’s geopolitical tension...s are reshaping cloud strategy. Learn why a sovereign private cloud offers true control, compliance, and long-term data protection. Check more stories related to cloud at: https://hackernoon.com/c/cloud. You can also check exclusive content about #sovereign-cloud, #private-cloud-sovereignty, #eu-cloud-regulations, #geopolitical-cloud-risks, #data-sovereignty-europe, #cloud-repatriation, #gdpr-and-cloud-security, #good-company, and more. This story was written by: @minio. Learn more about this writer by checking @minio's about page, and for more stories, please visit hackernoon.com. Geopolitical tensions, conflicting data laws, and reliance on U.S. hyperscalers complicate Europe’s cloud landscape. True sovereignty requires full control over infrastructure, code, and data—something public clouds can’t guarantee. This article argues that a cloud-native private cloud offers the most reliable path to sovereignty, security, and cost efficiency.

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Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Sovereignty in the Cloud. Europe's most reliable path forward, by Minio. 2025 has inherited a slew of geopolitical concerns that started years ago. U.S. foreign policy, U.S.-China relations, China's geopolitical maneuvers, conflicts in the Middle East, Russian-Ukraine war, and cybersecurity threats. Additionally, new leadership in the United States adds to the uncertainty created by these concerns. And as if all this were not enough, the backdrop of cloud computing in Europe
Starting point is 00:00:35 is that the most robust and feature-rich clouds are U.S.-based and ultimately subject to U.S. law. Geopolitical concerns always give rise to a need for sovereignty, or for governments and political unions to exert control over their assets to protect individuals, corporations, and state secrets. This paper aims to describe Europe's multifaceted cloud computing landscape amidst the current geopolitical landscape. Along the way, sovereign clouds will be defined, and alternatives to sovereign clouds will be proposed. What is a sovereign cloud? Look up the definition of sovereignty, and you will get a definition along the lines of supreme power or authority. So, a logical definition of sovereign cloud would be a cloud where a single governing entity
Starting point is 00:01:20 like the European Union or a single government controls the physical layer, data centers and infrastructure, the code layer, quality standards, source code management, and design, and the data layer, ownership, flows and use. A common misconception is that a sovereign cloud is a cloud where all physical assets are located within the boundary of some governing entity, and digital assets within the data layer are never allowed to flow to infrastructure outside of this boundary. While this is an important requirement of a sovereign cloud, it is not the only requirement. One more key criterion for a cloud to be truly sovereign is that it must fall under the auspices of only one government. To understand why this is necessary, consider the graphic below. Each government
Starting point is 00:02:02 makes regulations independent of the others. Also, most governments make rules that primarily benefit their interests. Consequently, what would happen if government A made an act providing data acquisition tools for intercepting and obstructing terrorism that clashed with government bus protections for personally identifiable information? Unfortunately, this is precisely the situation in Europe today. The graphic below replaces generically labeled vendors with real cloud providers and real governments. Let's take a more detailed look at the current state of cloud computing in Europe today. Related. What is sovereign cloud? Characteristics and key drivers the cloud environment in the EU. The three biggest cloud providers operating in the EU are
Starting point is 00:02:43 Google, Amazon, and Microsoft. They have a combined market share of 70%. European alternatives to these U.S.-based cloud providers are limited in number, and the few that exist are not as feature-rich as the U.S.-based cloud providers. Bellowy a diagram showing the conceptual difference between the capabilities of the U.S.-based hypers and those of European cloud service providers. Source Policy brief cloud sovereignty. PDF, public AT, AIVD organizations wishing to utilize cloud services must choose between a feature-rich platform from a U.S.-based provider and a local European provider. If they need efficiencies and capabilities that only a full-featured platform can provide in the data that will reside in the cloud is safe from sovereign regulations,
Starting point is 00:03:29 then one of the U.S.-based providers is best. However, if the data stored in the cloud is sensitive, It could be in the crosshairs of two competing regulations from two governing entities. In this case, a local sovereign cloud is the best cloud choice. To be fair, U.S.-based cloud providers have announced sovereign cloud offers. However, it is still early to assess their viability for a couple of reasons. First, these offerings are relatively new and have not been sufficiently tested against European regulations. Second, the hyperscalers are primarily focused on keeping data within a specified border and helping their customers manage various regulatory controls. How U.S.-based providers will deal with
Starting point is 00:04:10 conflicts of interest between U.S. and European regulations is unclear. Another long-term concern is that these, sovereign cloud offerings may become too costly for the cloud provider in the long run. In this case, they could de-invest in sovereign clouds, leaving European governments and organizations to find a new sovereign cloud. Now that we understand the true nature of a sovereign cloud and the cloud environment in the European Union lets look at three different approaches to data from three different governments. Different approaches to personal and non-personal data. Personal data refers to any information which can be used to identify a person directly or indirectly. It can vary from genetic, mental, physical, physiological, and cultural data, location data,
Starting point is 00:04:53 identification numbers, and names. Personal data uses are endless, including using digital ID to gain access to e-government services, participating in political processes such as voting, making online purchases, accessing financial services, etc. Big tech companies have become notorious for their data extraction practices. A practice known assurvalence capitalism occurs when a company extracts usage data and uses it to predict future behavior patterns. This usage data is also considered personal data. The Cambridge Analytica scandal is a constant reminder about what can happen when big tech collects personal data and does not secure it properly. Non-personal data is also important. Over the years, governments have realized that data is a valuable strategic asset in a digital
Starting point is 00:05:39 economy. It can be used for planning, policymaking, creating new opportunities for businesses and individuals, and boosting economic growth. With the increase of big data analytics and artificial intelligence, AI, there is a growing need for rules, regulations, and policy direction on how I should be leveraged to benefit people. The chart below summarizes three governing bodies and their overall approach to digital sovereignty, personal data, and non-personal data. Source.
Starting point is 00:06:07 Global approaches to digital sovereignty. Competing definitions and contrasting policy some interesting observations can be made from the chart above. Let's start with the US. Interestingly, the US does not have a unified approach to personal data, especially if you consider the debacle of the Cambridge Analytica scandal. Most importantly, the clarifying lawful overseas use of data, Cloud Act authorized U.S. authorities to demand access to data that is held by U.S. companies overseas.
Starting point is 00:06:36 It should be no surprise that China has everything locked down. Regulations on personal data are protected by their personal information protection law, people, which is similar to Europe's general data protection regulation, GDPR. Non-personal data is categorized according to national security risks and secured appropriately based on these risks. The European Union is leading the way in terms of protecting personal data. GDP risks influencing the policies governments around the world are putting together. They have also considered the fair use of non-personal data. A private cloud is a sovereign cloud.
Starting point is 00:07:11 What is the best cloud for organizations responsible for data that must be sovereign? Given the above facts about the true nature of a sovereign cloud, the current public cloud environment in Europe, and the differing approaches to data occurring worldwide, this is a challenging question, but one powerful option stands out. A cloud-native private cloud provides sovereignty and can be built in a cost-effective manner. Modern data storage techniques like data lakehouse allow for storing both structured and unstructured data while simultaneously disaggregating compute from storage. Both storage and compute can scale independently, so organizations only pay for what they
Starting point is 00:07:48 need and can scale out when their storage and compute requirements change. By ensuring your private cloud is cloud-native, organizations can move it to a public cloud in the future should an acceptable sovereign public cloud come along related what is a private cloud benefits and use cases other benefits of private clouds no one will argue that public clouds are the best way to get started you have resources on demand and today public clouds are feature rich so you will find everything you need to store your data host your services authorize your u s er s etc furthermore they save considerably on capital expenditures However, the public cloud is not a panacea. In the long run, they will cost you more for heavy
Starting point is 00:08:30 workloads. Many organizations today are experiencing this, which is led to a migration from public clouds to private clouds, also known as repatriation. As a concrete example of repatriation in action, consider 37 signals, the company behind Basecamp and Hay. They recently announced their complete exit from AWS. They calculated that they will save $2 million annually by running on-premise. Another notable example is GEICO, one of the largest automotive insurers in the United States, which is actively repatriating many workloads from the cloud aspect of a comprehensive architectural overhaul to cut down on exploding cloud costs. In Europe, many organizations are conservative in adopting AI because they do not want to bring their sensitive data to the cloud.
Starting point is 00:09:15 Using a private cloud allows organizations to move quickly and, at the same time, maintain control over their data. For those who have invested in GPUs, a private cloud for model training and model hosting is best, as you need compute close to your data. Conclusion, a sovereign cloud is a cloud that keeps digital assets within a specified physical boundary and, most importantly, protects personal and non-personal data from bad actors and the regulations of other governments. Today, a truly sovereign cloud is a relative concept. It only exists for a given organization IF the cloud is owned and operated by another organization within the same political boundary. If you have any questions, be sure to reach out to us on Slack. Thank you for listening to this
Starting point is 00:09:58 Hackernoon story, read by artificial intelligence. Visit hackernoon.com to read, write, learn and publish.

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