Tech giants warn Europe that ditching US cloud services could cost billions

A new report commissioned by the Computer and Communications Industry Association (CCIA) claims that European efforts to reduce reliance on foreign tech vendors could cost the region up to €115 billion over the next decade. The study, conducted by the European Center for International Political Economy, argues that the European Commission's previous estimate of €18 billion significantly underestimates the financial impact of the Cloud and AI Development Act (CADA). The report suggests that policies favoring local providers would increase operating costs, force complex workload migrations, and necessitate substantial software redevelopment. These costs are projected to impact both the public sector and critical private industries, including banking and healthcare. The CCIA, which represents major US firms like Amazon, Google, and Meta, is urging European policymakers to evaluate sovereignty based on actual risk rather than vendor nationality, warning that taxpayers and businesses will ultimately bear the financial burden of these regulatory shifts.