Tech Trade Group Argues EU Cloud Sovereignty Push Could Cost €115 Billion
A report commissioned by the CCIA claims European Commission estimates understate the cost of curbing foreign cloud vendors by more than sixfold.
European initiatives to reduce reliance on foreign technology providers could cost €115 billion over the next decade, according to an economic study by the European Center for International Political Economy (ECIPE). As reported by TechRadar Pro (https://www.techradar.com/pro/tech-giants-warn-europe-ditching-their-cloud-services-could-cost-billions-but-then-they-would-say-that), the paper focuses on the proposed Cloud and AI Development Act (CADA) and its financial impact across the European Union.
The report was commissioned by the Computer and Communications Industry Association (CCIA), a trade group representing major American technology companies including Amazon, Google, and Meta, all of which maintain substantial commercial operations in Europe.
The ECIPE analysis presents a sharp contrast with official European Union figures. The European Commission had previously estimated an upper-end transition cost of €18 billion over ten years. ECIPE’s baseline estimate of €115 billion is approximately 6.4 times higher, arguing that policies favoring domestic providers would increase recurring operating expenses, necessitate complex workload migrations, and require extensive software redevelopment.
ECIPE splits its €115 billion baseline into €33 billion for the public sector—comprising government bodies and public agencies—and €80 billion for private sector operators of critical national infrastructure, including banking, healthcare, energy, and transportation. Under higher-intensity sovereignty scenarios modeled in the study, cumulative costs reach €233 billion.
The CCIA is using the findings to lobby European policymakers to evaluate sovereignty requirements around operational risk rather than vendor nationality. "Taxpayers and businesses will foot the bill, yet the official assessment missed 70 percent of CADA's true impact," CCIA Europe policy manager Mitchell Rutledge said, urging member states not to rely on the Commission's estimates.
Sources
Written by
The Company Wire
Inside the companies building what’s next. Reporting on startups, technology, funding and the people shaping them.
