Newly drafted EU cloud rules could stop US hyperscaler access to critical tenders

Date:
Tue, 02 Jun 2026 09:01:10 +0000

Description:
Upcoming rule changes could put European cloud companies at an advantage against established EU hyperscalers.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Upcoming Cloud and AI Development Act could change how hyperscalers win major contracts European development, data sovereignty and foreign government exposure could be considered Henna Virkkunen expected to unveil changes amid broader push for European sovereignty The European Union is preparing a new set of rules under its upcoming Cloud and AI Development Act, and it could mean that US hyperscalers might not be able to win public-sector contracts so easily.

Europe's proposed rules could target sectors like banking, energy and healthcare, introducing more factors to consider beyond just price and technical limitations. Under the changes, companies bidding for those big contracts could also be assessed on whether their software and hardware have been developed in Europe, on the basis of data sovereignty protections, their exposure to foreign government access requests and more. Latest Videos From Watch full video here: You may like The EU wants to crack down even further
on using US cloud platforms for sensitive government data EU to back European alternatives to US dominated software and services in major push for tech sovereignty Our message is simple: Build European, buy European, protect European: European cloud providers join lawmakers and NGOs to end reliance on US hyperscalers New EU rules could make it hard for US hyperscalers to win
big contracts These revisions could drastically impact Amazon , Microsoft and Google 's chances to expand across Europe globally, they jointly account for around two-thirds of the entire cloud market.

One of the biggest influencing factors behind the changes, per exclusive Reuters reporting, is the US Cloud Act. Under these American rules, US companies could be required to share data with authorities even if the data
is stored outside of the US for example in a supposedly sovereign European location.

The EU has also been pushing digital sovereignty and independence in recent years, which includes reducing its reliance on American Big Tech. EU Technological Sovereignty, Security and Democracy EVP Henna Virkkunen has
been an influential character behind the push to build a stronger domestic cloud market and AI industry.

It's expected that Virkkunen will unveil the new proposals tomorrow (June 3), before it gets put to the bloc's member states and Parliament for approval. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/pro/newly-drafted-eu-cloud-rules-could-stop-us-hyper scaler-access-to-critical-tenders


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