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European cloud operators want the EU to judge cloud sovereignty by who controls the technology and service, which laws can reach them, and whether customers can keep operating if outside parties interfere—not simply by where a data center sits. In a joint letter dated March 17, 2026, 25 signatories urged the European Commission to build those tests into the proposed Cloud and AI Development Act (CAIDA). Their recommendations are an industry position, not enacted EU rules.
What the cloud operators mean by “sovereignty washing”
The phrase describes presenting a cloud service as sovereign on the strength of a European data-center location or a cybersecurity label while leaving other questions unanswered: who owns and controls the technology, which jurisdictions can compel a provider to act, and whether a customer can still access its data and workloads during a dispute or interference.
The signatories argue that sovereignty should cover effective control, technology ownership, and protection from extraterritorial jurisdiction. They say cybersecurity certification alone does not resolve exposure to foreign laws, citing the U.S. Cloud Act as an example. This is their policy argument; it is not a finding that any particular provider or certification is misleading.
What the March 17 letter asks the EU to do
The joint letter to European Commission Executive Vice-President Henna Virkkunen sets out five connected priorities. They are proposals from the signatories, not CAIDA requirements adopted by the EU.
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Set sovereignty criteria beyond location and certification
The signatories say: “Sovereignty criteria should reflect effective control, ownership of technology, and protection from extraterritorial jurisdiction, in line with the principles applied in the European Defence Fund (EDF) and EDIRPA regulations.” The practical implication is that buyers would need to examine control and legal exposure as well as a service’s physical footprint.
Preserve operational autonomy during interference
Where sovereign services are unavailable, they want customers to retain effective control of and access to data, infrastructure, and workloads if a foreign government or another third party interferes. That makes continuity and access part of sovereignty, rather than treating sovereignty as a static label.
Use procurement to favor resilience
The letter calls for reserved procurement shares for European cloud providers handling sensitive data and workloads. At a minimum, it proposes the principle “Buy European – or Ensure Resilience – or Explain.” This is a proposed procurement approach, not a rule currently established by the letter itself.
Support competition, interoperability, and open source
The signatories favor interoperable and federated European cloud initiatives, recognition of open-source software, and safeguards against anti-competitive bundling of cloud and AI services. In their view, alternatives should be able to connect and compete rather than being locked out by tightly bundled offerings.
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Invest in European capacity and sustainability
They ask public investment to prioritize Europe’s ecosystem, including alternative local sourcing for components such as memory and chips, alongside strict environmental sustainability requirements.
Why this matters to public buyers and businesses
For a buyer choosing infrastructure for sensitive workloads, the letter’s framework points to questions that a data-center address cannot answer by itself:
- Control: Who can administer the service and make operational decisions?
- Technology ownership: Who owns or controls the underlying technology?
- Jurisdiction: Which governments may have legal authority over the provider or service?
- Continuity: Can the customer retain access to data, infrastructure, and workloads during interference?
- Interoperability: Can workloads move or work across services without avoidable lock-in?
- Sustainability: What environmental requirements apply?
The letter does not score providers against these questions, verify a certification scheme, or establish which service is best for a particular buyer. Its 25 signatories include providers such as UpCloud, Aruba, Leaseweb, Infomaniak, Opiquad, Anexia, Deda Tech, Reevo, Clever Cloud, Ikoula Cloud, Seeweb, and Nextcloud. Their presence on the signatory list indicates participation in the advocacy effort only; it does not establish comparative capabilities, pricing, or suitability.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.The market and policy debate remain unsettled
Network World reported that U.S. hyperscalers account for roughly two-thirds of the EU cloud market, attributing that estimate to Safetica CTO Zbyněk Sopuch. The report did not provide the estimate’s underlying methodology, so it should be treated as an attributed figure rather than a measurement established by the letter.
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The same report described debate over how the proposed Act might affect existing suppliers. Sopuch argued that incentives, procurement preferences, and sovereignty requirements were more likely than an explicit ban on U.S. companies, while warning that stringent requirements could make replacement harder for European businesses. That is his prediction, not a confirmed legislative outcome. Clever Cloud public-affairs head Axel Laniez emphasized that the proposal concerns non-technical factors as well, including territorial laws.
As reported on March 19, 2026, the CAIDA text had not been finalized and its eventual form remained under discussion. The reporting available here does not establish what happened to the proposal after that date. Accordingly, the letter should be read as an attempt to influence policy, not as a description of current legal obligations.
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