European cloud alternatives to U.S. hyperscalers

In this article you will read,

• why companies are increasingly looking for European cloud alternatives to US hyperscalers and what role digital sovereignty plays in this,
• what advantages, but also what limitations, European cloud offerings have compared to US hyperscalers, and
• which clouds the independent iX report examines and how the T Cloud Public compares.

Cloud computing is one of the most important foundations of digital transformation today. Applications are delivered faster, new business models can be implemented more flexibly, and IT resources can be scaled as needed. At the same time, the requirements for cloud infrastructures have changed significantly in recent years. In addition to performance, availability and cost-effectiveness, topics such as digital sovereignty, data protection, compliance and resilience are becoming increasingly important.

Many companies are therefore questioning their previous cloud strategy. They are not necessarily looking for a complete replacement for the large US hyperscalers, but for a balanced architecture that combines innovation with control. European alternatives to hyperscalers are coming more into focus – especially when sensitive data is processed, regulatory requirements have to be met or companies want to reduce their technological dependency.

 The market has developed accordingly. In addition to the international offerings of AWS, Microsoft Azure and Google Cloud, powerful European cloud alternatives are now available that combine modern public cloud services, open technologies and high security standards. At the same time, the question arises for many companies: What actually distinguishes a European cloud – and in which scenarios is it a real alternative?

 Among other things, the iX report Public Cloud from Europe, published in 2025, provides orientation. The independent study by Söldner Consult compares eight European alternatives to US hyperscalers based on practice-relevant criteria – from technical infrastructure and management functions to security features and automation. The report provides companies with valuable clues, but does not replace the individual assessment of their own requirements. This is exactly what this article is intended to support.

The large hyperscalers have had a decisive influence on the global cloud market. Its global platforms offer an enormous range of cloud services, a high speed of innovation and globally available infrastructure. At the same time, more and more companies are dealing with the question of how technological dependencies can be reduced. This is not so much a fundamental decision against international cloud offerings as it is about a balanced cloud strategy that includes European alternatives to US hyperscalers.

The market for public cloud will continue to grow dynamically in 2026. For example, Morder Intelligence sees market growth of about 15 percent for the German market, from $56.5 billion (2025) to $65 billion (2026). Nevertheless, a large part of the global supply continues to be concentrated in a few companies. AWS, Microsoft Azure, and Google Cloud, in particular, dominate the global Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) market. In the European market, they account for about 70 percent of the market. This development has accelerated innovation and made cloud computing accessible to businesses of all sizes. At the same time, this creates an oligopoly. Many companies therefore want to broaden their digital infrastructure and create alternatives to better distribute technological risks.

Another aspect concerns the technical dependence on individual offers. Many modern applications use specialized platform services, proprietary APIs, or tightly integrated managed services. Although these enable the rapid development of new solutions, they often make it difficult to switch platforms later. This is why open technologies are becoming increasingly important. Kubernetes, OpenStack or standardized APIs make it easier for companies to migrate applications between different cloud environments. Virtual servers, storage, networks and databases can thus be operated more flexibly and existing investments can be better protected.

The attractiveness of European cloud alternatives does not result solely from their origin. Rather, their technical characteristics, transparent operator structures and their alignment with local requirements for data protection and compliance are decisive. For many companies, it is therefore not a question of "either-or" between international and EU clouds, but of which platforms offer the greatest added value for which use case.

Many companies prefer clouds whose operators are fully subject to the EU legal area. This makes it easier to understand responsibilities and assess compliance requirements. Especially for organizations with sensitive information, this creates additional transparency and trust. In addition, EU operators often integrate regulatory developments into their offerings at an early stage and consistently align their services with continental requirements.

A major advantage of many regional offers is the use of open technologies. Cloud solutions based on OpenStack and Kubernetes support standardized interfaces and reduce technical dependencies. This keeps applications more portable and makes it easier to migrate if necessary. For companies, this means more flexibility in the further development of their IT landscape and a lower risk of vendor lock-in. Modern managed services are also continuously evolving in this environment and are now available for numerous business applications.

Regulatory requirements are continuously increasing. In addition to the GDPR, NIS2, DORA and the EU AI Act are also gaining in importance. Companies therefore expect comprehensive security concepts as well as traceable certifications and audit evidence. Standards such as ISO 27001 or BSI C5 help to transparently demonstrate compliance with these requirements and to create trust with customers and supervisory authorities.

Regulatorische Anforderungen nehmen kontinuierlich zu. Neben der DSGVO gewinnen auch NIS2, DORA und der EU AI Act an Bedeutung. Unternehmen erwarten deshalb umfassende Sicherheitskonzepte sowie nachvollziehbare Zertifizierungen und Audit-Nachweise. Standards wie ISO 27001 oder BSI C5 helfen dabei, die Einhaltung dieser Anforderungen transparent nachzuweisen und Vertrauen gegenüber Kunden sowie Aufsichtsbehörden zu schaffen.

An often underestimated advantage of local offers is the close cooperation between customers and service organizations. Local contacts, German-speaking support and short communication channels facilitate complex transformation and migration projects in particular. Especially in the case of business-critical applications, regional support can make a decisive contribution to implementing projects faster and identifying risks at an early stage.

The decision for a cloud always depends on the specific requirements of a company. Neither international hyperscalers nor European cloud alternatives are fundamentally the better choice. In practice, differentiated strategies that combine different offers are becoming increasingly popular.

International hyperscalers continue to have advantages in some areas, such as highly specialized AI services, global content delivery networks, or individual platform services with worldwide availability. Companies should therefore carefully examine which functions are actually needed and which workloads can be operated economically and technically sensibly on a European cloud.

Many companies today deliberately decide against an exclusive commitment to a single cloud provider. Instead, they combine different public clouds to make the most of the respective strengths of the platforms. European alternatives to hyperscalers can, for example, process business-critical applications, sensitive data or regulated workloads, while specialized AI services or global platform services continue to operate on international hyperscalers. A multi-cloud strategy increases flexibility, reduces dependencies, and enables companies to combine technological innovation and digital sovereignty.

Not every application needs to be migrated immediately to a public cloud. Many companies are therefore pursuing a hybrid cloud approach, in which existing data centers are combined with a public cloud. In particular, applications with high latency, data protection or regulatory requirements often remain in the company's own infrastructure for the time being, while new digital services or additional computing capacities are flexibly obtained from the cloud. A European cloud offers itself as a bridge between existing IT landscapes and modern cloud architectures and enables a gradual, low-risk transformation.

The question of suitable cloud offerings is now occupying many companies. This is not only about technical performance, but also about which solution fits the individual requirements in terms of security, compliance, flexibility and digital sovereignty. The iX report Public Cloud from Europe, published in May 2025, provides important orientation. The independent study by Söldner Consult analyzes various cloud offerings and evaluates their range of functions based on practical criteria.

The comparison shows that European clouds have developed significantly in recent years. Today, they offer a wide range of cloud services and can cover many typical business needs. At the same time, the offers differ significantly in some cases. For example, while individual offerings have particular strengths in certain infrastructure components or pricing models, others differ in terms of service scope, automation, or security features. For companies, this means that there is no one best European cloud. The decisive factor is which platform best meets the requirements of the respective use case. The iX Report therefore offers valuable orientation. It helps companies compare the available options in a structured way and make an informed decision.

Functional Diversity: A Comparison of European Public Cloud Providers—T Cloud Public stands out with a broad range of services and BSI C5 (Type II) certification. 

The results of the iX comparison show that T Cloud Public offers a particularly broad range of services within the European cloud offerings examined. It is important to distinguish between independent test results and supplementary product features: The iX report evaluates the functional possibilities of the platform. Other characteristics such as operating model, certifications and technological basis complement this classification.

In the iX function comparison, the T Cloud Public achieves comprehensive coverage of the criteria examined. It supports key requirements of modern cloud use – from virtual machines to storage and networking to management and automation functions. This makes it suitable for companies looking for a high-performance public cloud "made in Europe". The wide range of functions is particularly relevant. Organizations can run different workloads without having to resort to additional services for core needs.

The T Cloud Public is operated in German, Dutch and Swiss data centers and is aimed in particular at companies that place high demands on data protection, compliance and digital sovereignty. For many organizations, it is not only the location of the data that is relevant, but also the operator structure and operational processes. It supports companies in combining cloud use with high requirements for data protection and security.

For companies with high requirements for security and compliance, verifiable evidence is a decisive selection criterion. T Cloud Public has extensive security mechanisms and certifications, including BSI C5 Type II. This gives companies a reliable basis for use in regulated areas. Public organizations and companies from sensitive industries in particular need services whose security level can be transparently documented.

The selection should not be made solely on the basis of individual functions or price. The long-term fit between technology, business requirements and strategic goals is crucial.

The discussion about European cloud alternatives is no longer just a question of location. Organizations are looking for solutions that combine innovation, scalability, and security with greater control over data and digital dependencies. Today, European clouds offer powerful alternatives for many applications. The decisive factor is not a blanket switch away from hyperscalers, but a strategy that combines technical requirements, regulatory requirements and long-term corporate goals. The iX comparison shows that European cloud offerings have now reached a wide range of services. This gives companies more choice – and the opportunity to make their cloud strategy more confident and flexible.