Europe Faces Massive Costs in Shift Away From US Cloud Services

New Research and Disputed Figures

Europe’s drive toward technological sovereignty may result in unexpectedly high financial losses for the continent. A new study commissioned by the Computer and Communications Industry Association (CCIA) indicates that implementing the EU’s proposed Cloud and Artificial Intelligence Development Act (CADA)—aimed at reducing reliance on American tech giants—could cost 115 billion euros over the next decade.

This figure significantly exceeds the European Commission’s official estimates, which capped costs at 18 billion euros. The authors of the study, experts from the European Center for International Political Economy (ECIPE), argue that the official assessment accounts for only 30% of the actual impact, potentially misleading policymakers.

Why Are the Costs So High?

According to the report, the 115 billion euro loss stems from several factors. Primarily, it involves an inevitable rise in operational costs when replacing American hyperscalers with European alternatives. Furthermore, businesses and government agencies would face complex data migration processes and large-scale software re-engineering.

The costs are divided between two main sectors: the public sector, including government agencies, would lose 33 billion euros, while the private sector—spanning banking, healthcare, energy, and transport—would face 80 billion euros in losses. Researchers warn that if the EU pursues its technological sovereignty policy more aggressively, total losses could reach as high as 233 billion euros.

Conflict of Interest or Real Threat?

It is important to note that the CCIA, which commissioned the study, represents companies such as Google, Amazon, and Meta. These firms have a direct commercial interest in the European market, meaning such reports can be viewed as part of a lobbying effort. However, CCIA policy manager Mitchell Rutledge urges European lawmakers to evaluate sovereignty based on actual technical risks rather than the origin of the companies involved.

For readers in Georgia who rely on global cloud services, this debate is significant because European regulations often become global standards. If Europe chooses technological isolation, it could impact the availability and pricing of services used by local companies and startups. The debate over where data is stored and who owns technology platforms is likely to intensify in the future.