Tech giants warn Europe ditching their cloud services could cost billions — but then they would say that

A new report from the European Center for International Political Economy (ECIPE) suggests that Europe's efforts to reduce reliance on foreign tech vendors, such as Amazon, Google, and Meta, could lead to a significant financial burden of €115 billion over the next ten years. This estimation, commissioned by the Computer and Communications Industry Association (CCIA) – a group representing major US tech companies, is substantially higher than the Commission's previous estimate of €18 billion.

The report contends that restrictions favoring European cloud providers may escalate operating costs, force customers to migrate workloads, and necessitate substantial software redevelopment. These costs are divided between the public sector, totaling €33 billion, and the private sector, accounting for €80 billion. These expenses encompass critical national infrastructure like banking, healthcare, energy, and transportation.

The estimated costs are categorized into two levels: a mid-range projection of €115 billion and a higher-end estimate reaching up to €233 billion, depending on the extent of the EU's pursuit of tech sovereignty. The CCIA advocates for policymakers to evaluate sovereignty based on genuine risks rather than the nationality of tech vendors.

CCIA Europe policy manager Mitchell Rutledge emphasized that taxpayers and businesses will ultimately bear the financial strain, cautioning that the European Commission's assessment has overlooked 70% of the actual impact outlined in the CADA.