European cloud project draws backlash from US tech giants

Germany and France are introducing a government-backed project to develop European cloud infrastructure in an effort to help local providers compete with U.S. technology giants, which dominate the global cloud market. Inc. and Microsoft Corp. criticized the initiative announced this week, called Gaia-X, saying the project will restrict data services along national borders.

The reach of Amazon, Microsoft and other U.S. giants worries European politicians and corporate executives. Companies in Germany and France, the continent’s economic powerhouses, and in other European Union countries are concerned about depending on technology providers that must comply with the U.S. Cloud Act, WSJ Pro Cybersecurity reported in October. The 2018 law requires American firms to provide law enforcement with customers’ personal data on request, even when the servers containing the information are abroad.

The European Union should’ve invested in efforts like this years ago, but rather late then never. And of course, it’s entirely unsurprising that US cloud providers are unhappy about this move, but that really shouldn’t be of any European legislator’s concern.


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