As of May 7, 2026, the European Commission is actively exploring regulations that could restrict the ability of EU governments to utilize U.S. cloud providers, such as Amazon Web Services, Google Cloud, and Microsoft Azure, for processing sensitive public sector data. Sources indicate that these discussions are part of a broader strategy aimed at increasing digital sovereignty within the EU.

The proposed “Tech Sovereignty Package,” which will be unveiled on May 27, 2026, seeks to address growing concerns over European reliance on American tech companies. European officials have noted that sensitive data, especially related to finance, health, and justice, must increasingly be stored and processed on EU-based cloud infrastructure to mitigate risks associated with U.S. data access laws, particularly the CLOUD Act, which allows U.S. authorities to compel companies to provide user data regardless of where it is stored.

Discussions around these restrictions are ongoing, and while they would not entirely prohibit U.S. cloud providers from government contracts, they would limit their use in handling sensitive information based on its classification level. The intention is to define specific critical sectors that must rely on European cloud solutions, thereby fostering a more independent digital environment.

EU officials have acknowledged that while many public sector bodies currently depend on U.S. platforms, there is a pressing need to shift toward homegrown alternatives, a sentiment that has grown as geopolitical tensions with the U.S. have increased. Countries such as France are already exploring local solutions, like the government-developed video conferencing tool, Visio, as part of this shift.

The Tech Sovereignty Package is not exclusively targeted at private companies, ensuring that any restrictions apply primarily to the public sector. However, if implemented, these regulations could prompt a significant transformation in how sensitive data is managed across Europe and how U.S. tech firms operate within the region.

As these discussions progress, the specifics of the proposals are expected to be refined, with a final plan requiring approval from all 27 EU member states. The implications of these policy changes could have far-reaching effects, not just for transatlantic relations but for the entire digital landscape in Europe.