Opinion: Did U.S. Tariffs Just Push Europe Further Toward Web Hosting Independence?

On March 14 this year, more than 100 European tech companies penned a plea to the EU. The message was clear: It’s time that Europe stops depending on foreign infrastructure.

The coalition, EuroStack, specifically urged the union to move away from reliance on the U.S., Russia, and China. They didn’t mince words either, pointing to the exact catalyst:

“The recent Munich Security Conference, subsequent US-announced measures and further developments in US/EU relations have exposed the stark geopolitical reality Europe is now facing.”

“[I]t has enormous talent, capabilities, assets and business record in the digital space, but the legacy of our structural fragmentation has led our Continent to fall significantly behind the US and China.”

It’s safe to assume that Europe is starting to feel uncomfortable: The letter landed just weeks after President Donald Trump returned to office with the “America First” agenda.

Months later, in his April 2 speech, Trump declared a new era of American revitalization, stating, “This will be indeed the golden age of America. It’s coming back, and we’re going to come back very strongly.”

Much of that has included bruising ties with foreign adversaries and even long-time allies through new trade policies aimed at strengthening the U.S. economy.

For Europe, these moves have only added fuel to a conversation it’s been having for years about digital sovereignty, especially with Big Brother watching.

Rising U.S. tariffs and global tensions aren’t just causing discomfort with China and Mexico.

European companies that depend on American cloud providers could get caught in the middle, facing higher costs or trouble moving data across borders.

Joakim Ohman, CEO of Elastx, shared his perspective with Tech Newsday.

“It’s a big worry about the uncertainty around everything,” said Ohman. “And from the Europeans’ perspective — that the US is maybe not on the same team as us any longer.”

Public sentiment backs these concerns: A December 2024 poll shows that a majority of Europeans now see the U.S. as a “necessary partner,” not a true “ally.”

Mathias Nöbauer, the CEO of Swiss-based hosting provider Exoscale, reiterated that the shift is being driven by customer demand.

“[C]ustomers from Denmark [are] very explicit that they want to move away from US hyperscalers because of the US administration and what they said about Greenland,” Nöbauer said.

But it’s not just about acquiring countries or new trade policies.

Many people have felt a deep level of mistrust since 2013, when Edward Snowden revealed the NSA was conducting surveillance on European citizens.

Tempers probably flared even more in 2018 when the U.S. enacted the CLOUD Act, which allows law enforcement to access data stored on international servers.

Since then, data-related agreements have been inconsistent at best.

André Rogaczewski, CEO of a Danish IT consultancy with more than 8,000 tech professionals across Europe, summed it up in an open letter titled “Stand Tall Europe.”

“From social media to cloud infrastructure, from applications to algorithms, we are dependent on technologies developed elsewhere, by actors who may not share our values,” Rogaczewski wrote.

He continued: “This is why we are calling for European solutions — built by European companies, run on European data, and accountable to European citizens.”

We know this sentiment isn’t unpopular, so perhaps Europe finally has the momentum to push the digital sovereignty debate that’s been simmering for years.

From control panels to plugins and billing systems, American companies control 60% of the global cloud market, proving they’re an inescapable part of Europe’s backbone.

As of March, the U.S. has 5,426 operational data centers, followed by Germany (529), the UK (523), France (322), Australia (314), and the Netherlands (298).

But major hosting companies, including OVHcloud, IONOS, and Hostinger, are doing their part to build up Europe’s web infrastructure.

There’s plenty of ambition; the problem is execution.

While the EU looks unified on paper, a typical decision requires navigating a medley of 27 regulatory environments, requiring at least 55% of the member states to vote in favor.

(If you think “12 Angry Men” is infuriating, imagine a meeting at the European Union.)

And historically speaking, late-stage startup funding is uncommon. In 2023, total European startup funding dropped by more than 55%.

So while Europe has made bigger strides in areas like green tech, it’s still stuck in red tape and running short on capital in some areas.

Although the European Commission hasn’t issued a formal response to the EuroStack open letter, it is just one suggestion out of many initiatives that are already brewing.

The coalition proposed several measures, including creating a fund to drive investments in AI/cloud technologies and a “Buy European” policy to support the local supply chain.

Over the past two decades, European countries and the EU have taken other steps toward greater self-reliance:

• ITER Project (2007): ITER is an international project that aims to prove nuclear fusion as a sustainable, carbon-free energy source, potentially capable of powering AI-driven hyperscale data centers.
• Galileo Satellite System (2016): Galileo is the EU’s global navigation satellite system and was developed to reduce its reliance on U.S. and Russian GPS systems.
• Gaia-X Initiative (2019): Gaia-X is an initiative aimed at creating a federated, secure European cloud infrastructure to ensure that data remains under the control of its users.
• European Chips Act (2022): The European Chips Act is designed to invest in Europe’s semiconductor manufacturing. The goal is to increase its global market share from 9% to 20% by 2030.
• Digital Markets Act (2022): DMA is an act that enforces fair competition and user rights on digital platforms. It has already issued hefty fines to U.S. tech giants, including Meta and Apple.

But without a major overhaul — which will require generous funding and research — Europe’s push for digital independence can look like it’s trying to fly from the nest before it’s learned how.

Hopefully, these preemptive steps will be what helps shape a different future.