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European spending on sovereign cloud infrastructure is forecast to triple from 2025 to 2027, driven by geopolitical tensions and concerns over reliance on US hyperscalers. Gartner predicts Europe will grow from $6.9 billion in 2025 at an 83% rate, with fears stemming from the US CLOUD Act and recent incidents like Microsoft temporarily cutting services to ICC prosecutor Karim Khan. European organizations are considering local providers like STACKIT and OVHcloud for new workloads rather than migrating existing ones. While US providers like AWS, Microsoft, and Oracle have launched sovereign cloud offerings in Europe, analysts say European users remain unconvinced these mitigate risks due to continued dependencies on US parent companies.

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