German firms demand alternatives to US cloud giants amid sovereignty concerns

German companies are expressing growing alarm over their dependence on US cloud providers, with a new study highlighting a significant increase in this concern. The "Cloud Report 2026" by the digital association Bitkom found that 85% of company executives believe Germany is too reliant on US tech giants for cloud technologies, up from 78% a year ago.

This heavy reliance is evident in current practices, as 71% of German businesses utilize cloud services from US providers. However, their preference lies elsewhere; only a mere 8% would actively choose American companies. The ideal scenario for most businesses, 91%, would be to use cloud providers based in Germany, but currently, only 53% have such options available.

The geopolitical landscape is also a major factor, with 64% of companies feeling compelled to rethink their cloud strategies due to the policies of the US government. A key issue identified by executives is the perceived lack of competitiveness among domestic cloud providers. 43% of firms lament the absence of European alternatives that can match the technological capabilities of US hyperscalers. Consequently, 80% are strongly advocating for the development of German or European hyperscale cloud providers capable of competing on a global scale.

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The Cloud is a central infrastructure for the German economy. In light of major geopolitical changes, questions of sovereignty and the reduction of one-sided dependencies are now coming into focus.

"The cloud is a central infrastructure for the German economy. In light of major geopolitical changes, questions of sovereignty and the reduction of one-sided dependencies are now coming into focus," stated Bitkom President Ralf Wintergerst. "Germany must free itself from one-sided dependencies regarding the cloud, considering the increasing importance of AI and data."

The urgency of the situation is reflected in companies' growing willingness to make compromises. 37% of businesses would now accept significant disadvantages to use a cloud service that strictly processes their data within Germany and shields it from foreign access. Another 25% would tolerate longer waiting times for new features. However, when it comes to pricing, willingness to compromise diminishes significantly, with only 12% prepared to pay 10% to 20% more.

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Germany must free itself from one-sided dependencies regarding the cloud, considering the increasing importance of AI and data.