June 14, 2025, 1:05 pm | Read time: 3 minutes
Skepticism Toward U.S. Tech Giants Grows–But the Desire for Digital Sovereignty Faces Harsh Reality While German companies hope for European cloud services, the switch often fails due to performance and cost issues.
According to the current “Cloud Report 2025” by the digital association Bitkom, German companies are seeking European cloud alternatives. However, the market power of American providers remains unbroken.
Desire for European Cloud Grows–Switch Remains a Hurdle
More and more German companies want to rely on European or even German cloud providers for digitalization. The “Cloud Report 2025” published by the digital association Bitkom on Wednesday shows a clear trend: 78 percent of respondents consider the dependency on U.S. providers too high. Additionally, all respondents (100 percent) would prefer to use German services.
Political Uncertainties Fuel Strategy Shift
The report identifies the political situation in the U.S. as a key driver for this desire. The survey shows that due to political changes under U.S. President Donald Trump, every second company already using cloud computing wants to rethink its cloud strategy. The number of companies preferring U.S. services has significantly decreased–only six percent. In comparison, 100 percent would prefer German providers, 61 percent European, 12 percent Japanese, and six percent Indian.
Market Remains Firmly in American Hands
Despite this development, U.S. corporations like Google, Microsoft, and Amazon continue to dominate the European cloud market. They are investing heavily in data centers and infrastructure–not least due to the increasing demand from AI applications. This makes it difficult for new European providers to gain a foothold.
A central problem: Many companies feel compelled to use American cloud solutions because essential software is only offered in the cloud. In the Bitkom survey, 60 percent of companies stated they had no choice. Therefore, around half plan to increase their cloud spending in 2025.
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Bitkom Calls for Political Support
“The cloud is indispensable for the German economy,” said Bitkom President Ralf Wintergerst. Its use plays a central role in companies’ digitalization. Above all, it contributes to standardization. At the same time, he warned: “The train hasn’t left the station yet. But we have to run pretty fast.”
Wintergerst called for targeted political measures to strengthen the competitiveness of German cloud providers: lower electricity prices, increased use of German clouds by authorities, and sufficient data centers domestically are crucial. There is a “digital middle class” in Germany that could build competitive offerings.
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High Demands on European Alternatives
But the path to digital independence is rocky: According to the Bitkom survey, companies would only switch to European cloud services if they can match U.S. providers in terms of performance. Few are willing to accept higher costs.
The desire for sovereignty is therefore great–but without strong, competitive offerings and political support, it remains unfulfilled for now.