American industry group claims European cloud sovereignty push could cost taxpayers and businesses billions

European plans to reduce reliance on American cloud infrastructure could cost €115 billion over the next decade, according to research by the European Centre for International Political Economy. The study was commissioned by CCIA Europe, an industry association representing US technology companies such as Amazon, Google, and Meta. The group's mid-level estimate is more than six times higher than the European Commission's upper projection of €18 billion for the proposed Cloud and AI Development Act, with high-end scenarios climbing past €233 billion. [1][2]

The research projects €33 billion in direct expenses for public agencies and around €80 billion for essential private sectors including healthcare, energy, banking, and transport. This private-sector estimate models a scenario where sovereignty mandates extend to 25 percent of essential industry workloads under Article 31 of the legislation. The authors claim software redevelopment and re-architecting would comprise 69 percent of total transition expenses, with Luxembourg, Denmark, Austria, Finland, and Ireland facing the highest estimated costs per worker. [1][2]

CCIA Europe is urging policymakers to evaluate risk through technical safeguards rather than vendor nationality. Policy manager Mitchell Rutledge argued that official Commission assessments overlooked 70 percent of the proposal's true financial impact. Meanwhile, major members like Amazon and Google have developed their own dedicated sovereign European cloud platforms to retain local clients amid mounting regulatory pressure. [1][2]