UK lawmakers warn reliance on U.S. cloud giants poses strategic risk - Bloomberg

UK lawmakers have cautioned that the country's increasing dependence on U.S. cloud providers for essential public services presents both strategic and economic risks, according to Bloomberg. The UK government currently spends around £1 billion ($1.3 billion) annually on cloud services, primarily through Amazon Web Services (AWS) and Microsoft, which may account for up to 80% of government cloud purchases. However, officials are uncertain of the exact extent of this reliance.

During a recent parliamentary committee, Chi Onwurah, chair of the science, innovation, and technology committee, expressed concerns over the U.S. CLOUD Act, which could compel U.S.-based cloud providers to disclose data stored on their servers or withdraw services under certain circumstances. Experts testified that this could pose significant challenges to the security and sovereignty of critical government data.

The issue has become more pressing as various sectors migrate to U.S.-owned cloud platforms, including health, defense, and tax services. For instance, HM Revenue & Customs awarded AWS a £473 million, 10-year contract to manage UK tax data, while the UK defense ministry signed a £400 million agreement with Google Cloud. Similarly, National Health Service trusts are moving patient records to U.S. cloud providers.

Despite assurances from government departments that their data is protected in UK-based data centers and contracts are subject to stringent security and data protection requirements, Onwurah argued that it is unlikely for Britain to develop a domestic competitor capable of matching the scale and capabilities of the largest U.S. providers.

She advocated for greater cooperation with European counterparts, noting that France has already replaced Microsoft Azure with a domestic provider for its national health data hub, while Germany's Schleswig-Holstein has shifted towards open-source alternatives.

Moreover, the European Commission is developing a framework aimed at enhancing Europe's cloud and AI sovereignty. The UK government has stated that it is working to bolster resilience and improve public-sector cloud procurement, with departments now required to consider the risks associated with excessive dependence on individual suppliers.