European AI cloud providers are aggressively seeking billions in funding, leveraging renewed fears over tech sovereignty and geopolitical instability. With U.S. dominance in cloud infrastructure under scrutiny, homegrown startups are pitching themselves as trusted alternatives to Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
These three hyperscalers currently control over 70% of Europe’s cloud market. But recent moves by U.S. President Donald Trump—especially his abrupt tariff packages—have rattled global markets and raised red flags across European tech sectors.
Though Trump later scaled back some tariffs, uncertainty remains high. Many European businesses now worry that access to U.S.-controlled infrastructure could be weaponized in future policy shifts.
This growing unease is fueling massive funding efforts across the continent. UK-based Ori is targeting a fresh round by year’s end after already securing $140 million. Fellow UK startup Nscale is reportedly chasing a huge $2.7 billion. Fluidstack, also from the UK, is in talks to raise up to $200 million. Meanwhile, Sweden’s Evroc is preparing to raise €1 billion in debt and equity before year-end.
Tech Sovereignty Becomes a Key Investor Pitch
The return of Trump has amplified concerns over U.S. leverage in digital infrastructure. For investors, that’s triggered a surge in interest around European cloud sovereignty.
“I know that some are fundraising or gearing up for a fundraise on the back of that,” said Tatiana Shalalvand, investment director at Kinnevik. “Some companies have been positioning themselves as European alternatives to U.S. hyperscalers.”
The AI boom has added urgency. As more companies race to build powerful models, high-performance compute capacity is in short supply. In response, European governments are backing national AI infrastructure with record investment.
In January, the UK announced £14 billion in data center projects as part of its national AI strategy. Nscale alone contributed £2.5 billion. France is also going big, securing over €100 billion in similar initiatives. Two major beneficiaries: Mistral AI and Evroc, both committed to building sovereign AI data centers within France.
Trump’s tariff announcements have sparked fears of rising costs for U.S. cloud providers, as imported hardware becomes more expensive. Worse, European companies now worry that access to critical infrastructure may be restricted in future trade disputes.
Major players are responding. On Wednesday, Microsoft said it would take legal action if the U.S. government blocked its services in Europe. The company also pledged “tens of billions” in annual spending on European data centers.
That same day, Business Insider reported an internal AWS memo noting internal concerns about potential policy moves. AWS leadership admitted they had not yet received formal warnings from Washington but were monitoring developments closely.
Sifted contacted AWS, Microsoft, and Google Cloud for comment but did not receive a response.
Demand for Sovereign Cloud Solutions Soars
European providers say demand is already surging. “Since the election we have seen a significantly increased demand in sovereign European cloud solutions like IONOS and other companies provide,” said German firm Ionos.
Their concerns center on data jurisdiction. “More companies are afraid that U.S. authorities—or even private firms—may access data stored on servers under U.S. control.”
Evroc CEO Mattias Åström agrees. He says investor and customer inquiries have skyrocketed since January. Originally planning to close their €1 billion round by 2026, Åström says they’re now accelerating that timeline due to “exploding customer demand.”
Fluidstack, which had previously emphasized technical performance, is now leaning heavily into the sovereignty message. “We’re seeing increased demand from labs and enterprises looking for European infrastructure they can trust,” said president and co-founder César Maklary.
