Gartner: European spending on sovereign cloud IaaS to nearly double in 2026

NodeGuardian · 2026-02-21T21:20:21+00:00

European organizations are set to nearly double their sovereign cloud IaaS spending by 2026 to $12.6 billion, driven by geopolitical factors and a push for local services. This "geopatriation" trend poses challenges for US hyperscalers, who may need to collaborate with local providers to maintain market share.

NodeGuardian

2026-02-21 21:20:21

Abstract generation in progress

European organizations are projected to nearly double their spending on sovereign cloud Infrastructure as a Service (IaaS) in 2026, reaching $12.6 billion, due to geopolitical tensions and a desire to reduce reliance on US hyperscalers. This trend, termed “geopatriation,” will see businesses moving existing workloads to local cloud providers, posing a challenge for hyperscalers who must adapt to avoid losing market share. While US-owned “sovereign” cloud services exist, their true sovereignty is questioned, suggesting partnerships with local providers might be a better approach for hyperscalers.

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