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The U.S. will soon have a new political agenda. What does that mean for the European Cloud?

Ryan Miller
December 9, 2024
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The recent U.S. presidential election has sent ripples across industries worldwide. For the European tech industry, this political transition will likely bring about complex implications, likely including challenges stemming from anticipated new trade policies, but also renewed opportunities to assert European leadership in technology on the global stage.

A Shift in Global Tech Dynamics

The new U.S. administration is poised to reinforce the global trend toward domestic-first policies, doubling down on prioritizing national interests. This could catalyze a broader shift as Europe will likely respond by focusing inward as well, reinforcing its own priorities and tightening regulations around foreign influence in critical sectors like technology and cloud services.

For Europe, this moment could act as a rallying call to further protect its digital sovereignty. Historically committed to maintaining control over its data and infrastructure, Europe may accelerate efforts to create a self-reliant digital ecosystem. Stricter regulations, building on frameworks like GDPR, could emerge to reinforce these goals, potentially limiting the influence of foreign hyperscalers that don’t fully comply with Europe’s regulatory requirements.

This environment sets the stage for a wave of renewed investment in European-led digital solutions. European cloud providers are uniquely positioned to deliver on the region’s high standards of compliance, privacy, and trust. In fact, as the U.S. potentially relaxes its regulatory stance on data and tech, European cloud providers may even see an opportunity to become the solution of choice on the global stage where they can capitalize on their reputation for safeguarding user data.

Web3: A Frontier of Possibility

One of the most significant policy shifts with the incoming administration is the expected new approach to Web3 and cryptocurrencies. With anticipated deregulatory measures and a pro-crypto agenda, the U.S. could become a hotbed for blockchain innovation. However, the European Web3 ecosystem shouldn’t underestimate its own advantages.

Europe has built a robust Web3 foundation and a strong developer community. Plus, the demand for decentralized, sovereign digital solutions aligns naturally with Europe’s policy focus on reducing dependency on foreign technology providers.

Ultimately, the new administration’s pro-crypto stance and resulting adoption in the US will likely benefit Web3 companies globally by validating the technology’s mainstream potential, creating further momentum for blockchain adoption.

U.S. Hyperscaler Competition

For the big U.S.-based hyperscalers, the new administration’s deregulatory policies could pave the way for aggressive expansion, with the likes of AWS, Google Cloud, and Azure leveraging newly relaxed rules to cut costs or introduce new services. This could make for stiffer competition between U.S. and European cloud providers. 

At the same time, Europe offers clear advantages for cloud providers based in the region. The EU’s focus on digital sovereignty and compliance offers a clear opening for European providers to position themselves as more trusted alternatives to the U.S.-based hyperscalers. This is particularly relevant for compliance-minded businesses seeking solutions that guarantee data remains within European borders, free from extraterritorial reach like the U.S. CLOUD Act.

The Table is Set For European Challengers

The U.S. president-elect may very well reshape the global tech landscape, but this may present more of an opportunity for Europe than a threat. Today, European businesses are demanding solutions from partners that align with their values of privacy, security, and digital sovereignty. And among those businesses, Impossible Cloud stands out. As a European Web3-native cloud provider, Impossible Cloud stands at the convergence of two key trends: the rising demand for sovereign cloud solutions and the growing potential of decentralized technologies. By offering innovative, GDPR-compliant, and cost-effective cloud services, Impossible Cloud is poised to emerge as a critical player in this new landscape.

The table is set for European challengers in the cloud space. The question isn’t whether European providers can seize the moment—it’s how quickly they’ll act to claim this advantage.

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