Digital Euro Project Bars US Cloud Giants in Push for European Tech Sovereignty
European Central Bank will only use cloud operators headquartered in the EU for its digital currency infrastructure
The decision effectively shuts out Amazon Web Services, Microsoft Azure, and Google Cloud — the three dominant players in global cloud computing — from one of Europe's most strategically important technology initiatives.
The move reflects deepening concerns across European institutions about dependence on US technology infrastructure, particularly for critical financial systems. With transatlantic relations under strain and data sovereignty becoming a political flashpoint, the digital euro project is being positioned as a test case for European technological self-sufficiency.
European cloud providers such as OVHcloud, Deutsche Telekom's T-Systems, and others are expected to compete for the contracts. While these companies lack the global scale of their American counterparts, EU officials argue that sovereignty considerations outweigh performance advantages.
The digital euro itself remains in development, with the ECB expected to make a final decision on whether to proceed with a full launch in late 2026. If approved, it would be one of the first major central bank digital currencies issued by a G7 economy.
Analysis
Why This Matters
This is one of the most concrete examples of European tech sovereignty moving from rhetoric to policy. If a critical financial infrastructure project can run entirely on European cloud providers, it sets a precedent for other sensitive government systems.
Background
Europe has long struggled with its dependence on American tech companies. The CLOUD Act, Schrems II data transfer ruling, and ongoing concerns about US government access to data held by American companies have all fuelled the push for alternatives.
Key Perspectives
Sovereignty advocates see this as overdue. Critics worry that excluding the most capable providers will result in higher costs and slower development. The practical question is whether European alternatives can match the reliability and security required for a central bank digital currency.
What to Watch
Whether this approach spreads to other EU institutions and member states. If the digital euro succeeds on European infrastructure, it could accelerate the broader push to reduce American tech dependence across government systems.