We live in uncertain times. Europe faces an increasingly complex global landscape. Its relationship with the United States, particularly in technology, cloud services, and data privacy, remains pivotal. New governments in Washington in 2025 and Brussels in 2024 could significantly reshape a number of key issues, notably digital autonomy, cloud infrastructure, and data governance.
Navigating a shifted landscape of cloud computing and cybersecurity
We can anticipate that the next Trump Administration will continue the U.S. government’s emphasis on enhancing U.S. cybersecurity defences, particularly through policies designed to identify users of U.S.-based cloud services. For example, a previous policy proposed by the Trump Administration that became a proposed regulation under review by the Biden Administration would introduce “know your customer” (KYC) requirements for cloud providers, aimed at strengthening customer identity verification to better secure digital infrastructure.
Similarly, the Clarifying Lawful Overseas Use of Data Act (CLOUD Act) further bolstered this position by mandating that U.S. tech companies comply with court orders to provide user data to U.S. authorities, even if the data is stored internationally in a foreign jurisdiction.
While these measures are designed to support U.S. law enforcement’s access to foreign adversary data and improve customer identity verification, their effects have reverberated globally, influencing technology decisions from non-U.S. entities that depend on American cloud infrastructure.
For European Union (EU) entities, policies like KYC requirements and the CLOUD Act could complicate compliance efforts and make the use of U.S.-based cloud providers potentially even more cumbersome than they are today. Amidst these new regulatory compliance layers, EU policymakers are seeking to reduce EU organization dependence on foreign clouds in order to advance digital independence and broader economic goals (as detailed in the Mario Draghi report). These factors could lead to a shift in the cloud computing market landscape and potentially accelerate Europe’s drive toward self-sufficiency in cloud infrastructure.
Data privacy and the ongoing GDPR tensions
Europe’s General Data Protection Regulation (GDPR) has set a high standard for data privacy globally, placing individual privacy rights at the forefront. However, during the prior Trump administration, U.S. officials argued that stringent privacy regulations sometimes obstructed public health and national security efforts, reflecting the broader differences in approach to data privacy between the U.S. and the EU. Even today, there are challenges with GDPR and uncertainty about the real volume of U.S. data requests made upon EU data.
A new Trump administration could press for more adversary data access and alter the approach reflected in the Biden Administration’s October 2022 Executive Order (EO 14086), which sets out safeguards for U.S. intelligence activities. The order aimed, in part, to allay EU concerns over access to European personal data and paved the way for the new Data Privacy Framework (DPF) for international data transfers.
These developments increase uncertainty regarding GDPR requirements, particularly for transatlantic businesses handling sensitive data. In this context, EU authorities may be prompted to further scrutinize data transfers to the U.S. and potentially heighten barriers if they perceive U.S. policies as undermining European data protection and digital independence. This uncertain environment could also drive Europe to bolster its data privacy protections independently of the U.S. and develop an independent EU Sovereign Cloud strategy. A lot will depend on whether the Court of Justice of the E.U. (CJEU) upholds the Data Privacy Framework or strikes it down like its predecessor agreements.
Strategic autonomy and Europe’s push for digital sovereignty
New U.S. policies on adversary data access to protect its national security, and new EU policies to invest in its own technology supply chain could together further strain U.S.-EU digital collaboration, and accelerate the EU’s pursuit of digital sovereignty. European leaders are already increasingly advocating for reduced dependency on foreign technology providers, particularly in critical digital infrastructure, such as cloud services, AI, and cybersecurity, with regulations like the Data Act, AI Act and national security qualifications like SecNumCloud in France. Interestingly however, the EU has not chosen to include sovereign requirements in the latest draft EU Cloud Certification Scheme (EUCS) and rightly so, it shouldn’t be in technical guidance, although it needs to be defined somewhere as there is considerable evidence that customers and vertical industries in the EU are concerned about jurisdictional control of secret and national data.
To this end, the EU has been investing in initiatives like GAIA-X, a project aimed at creating a European cloud ecosystem that offers robust security and compliance with European privacy standards. Although adoption of GAIA-X has been limited, the initiative remains alive as part of a broader vision for European data sovereignty that ensures digital assets and data remain within a regulatory and jurisdictional environment that aligns with EU and national values and priorities. (as seen in new companies like Dynamo building a federated EU Sovereign Cloud marketplace based on Gaia-X frameworks). By advancing sovereign cloud solutions and prioritizing privacy in digital frameworks, Europe can safeguard its data while reducing reliance on U.S. hyperscale technology—a move that is both strategic and increasingly viewed as essential for long-term sovereignty.
Future of U.S.-EU Collaboration in technology and privacy
It is essential to recognize the longstanding beneficial and technological interdependence between the U.S. and the EU. The transatlantic partnership is foundational to innovation, cybersecurity, and economic growth on both sides of the Atlantic. Nevertheless, the last decade has put strain on this interdependence, with the U.S. emphasising adversary data access to protect national security, and Europe prioritizing resilience, independence, and compliance with GDPR, even if that means diverging from U.S.-centric approaches.
For U.S. owned cloud data-based businesses operating in Europe, adapting to an evolving European regulatory environment will be crucial. Meanwhile, European companies will need to weigh the benefits of U.S.-based hyperscale cloud services against the regulatory challenges and potential risks posed by shifts in U.S. policies on data security and privacy.
The potential move towards a more autonomous digital Europe?
Policy priorities in Washington and Brussels highlight the need for Europe to solidify its digital sovereignty strategy. If not now, when? By fostering an autonomous cloud ecosystem and reinforcing its data privacy commitments, Europe can navigate potential challenges in U.S.-EU technology relations. A stronger, more self-reliant European digital infrastructure not only strengthens data privacy protections but also provides a stable foundation for European innovation.
As Europe continues to assert its digital autonomy, its choices will shape the future of global cloud services and data privacy standards. The developments in this domain will likely be instrumental in defining the next chapter of U.S.-EU relations—and perhaps a turning point toward a more sovereign European digital landscape.
