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Europe is drawing lines in the digital sand. Leaders across the EU are actively working to limit the role of US and Chinese technology firms in two areas they consider strategically vital: cloud computing for government services and satellite spectrum allocation.
The effort isn’t theoretical anymore. On April 17, the European Commission awarded a €180 million sovereign cloud tender to four European companies under its new Cloud Sovereignty Framework. That’s real money going to EU-based providers, with non-European firms effectively shut out of the bidding.
The Cloud Sovereignty Framework and what it actually requires
To get in, cloud providers need to demonstrate operational control by EU entities, supply chain transparency, and full compliance with EU law. The framework sets the template for how Europe plans to evaluate cloud providers going forward, particularly when sensitive public-sector data is involved. Discussions are already underway about restricting non-EU cloud platforms from processing sensitive government information entirely.
The Digital Markets Act, the EU’s flagship competition regulation for tech platforms, is being expanded to include cloud and AI services as of April 28. That means the same regulatory teeth that Brussels has used to go after app store monopolies and search engine dominance will now apply to the cloud market.
Satellites, spectrum, and the IRIS² constellation
The centerpiece of Europe’s satellite effort is IRIS², a planned multi-orbital satellite constellation that would give the EU its own secure connectivity network. The project targets approximately 290 to 300 satellites and aims for operational capability by 2030.
Satellite spectrum, the radio frequencies that satellites use to communicate with ground stations, is a finite resource. European leaders are debating how to ensure that spectrum rights for EU territory don’t end up concentrated in the hands of non-European operators.
What this means for investors
European cloud and satellite companies that meet the sovereignty framework’s requirements suddenly have a protected market worth hundreds of millions in government contracts. For AWS, Azure, and Google Cloud, which collectively dominate European cloud infrastructure, the government and sensitive-sector market is being walled off. They will need to reevaluate their European strategies, potentially through joint ventures or subsidiary structures that satisfy sovereignty requirements.
IRIS² with its 290-to-300-satellite target creates a substantial procurement pipeline for European aerospace and defense companies. EU policy is explicitly designed to keep this spending within European supply chains, which could benefit firms like Airbus Defence and Space and smaller satellite manufacturers across the continent.
The 2030 operational target for IRIS² will be one of the first major tests of whether Europe can match its sovereignty ambitions with actual engineering delivery.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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