EU weighs restricting use of U.S. cloud platforms to process sensitive government data, sources tell CNBC

The European Commission is preparing a “Tech Sovereignty Package” due May 27 that may restrict EU governments’ use of U.S. cloud platforms for processing sensitive public-sector data. Proposals under discussion would limit third‑country cloud providers (not an outright ban) for high‑sensitivity workloads in sectors such as finance, justice and health. The move responds to concerns around dependence on U.S. providers and the 2018 Cloud Act. Market implications: potential headwinds for dominant U.S. cloud vendors (examples cited include Microsoft, Google and Zoom) and potential tailwinds for European sovereign‑cloud projects and suppliers, aided by public procurement and targeted funding. The Commission has already awarded a €180m tender to four European sovereign cloud projects, and France is rolling out a government video tool (Visio) by 2027 as alternatives to U.S. services.