Europe’s Technological and Digital Sovereignty Threatened by U.S. and Chinese Giants Independent of American digital solutions and the Chinese technological ecosystem, from raw materials to networks to e-commerce, Europe sees its technological and digital sovereignty weakened. A battle that the Old Continent has not yet lost, but remains more than ever strategic and a priority.
Remember. In early January 2026, the spotlight suddenly turned to Greenland. Shortly after returning to the White House, Donald Trump resurrected an idea discussed a few years earlier: to place this territory, which is under Danish sovereignty, in the orbit of the United States. In this icy realm, far from the centers of power, a new geopolitical hotspot emerges and deeply strains transatlantic relations.
On January 16, 2026, Donald Trump threatened to impose tariffs on countries that refused to support his initiative to approach Greenland. The day before, in response to American aggressiveness, Denmark urgently launched a military exercise called “Arctic Endurance.” Several European countries, including Germany, Norway, Sweden, and France, participated. The first French soldiers arrived on the scene on the morning of January 15, demonstrating rapid European solidarity in the Arctic.
Behind the diplomatic turmoil, a technological question arises: what would happen if tensions were to escalate further? In diplomatic circles, as well as in Brussels, Europe’s technological dependence on the United States remains a concern. A persistent idea, or a real nightmare: the credible threat of a digital blackout still exists.
The Silicon Valley significantly influences the lives of Europeans, both in daily life and in businesses and administrations, even though alternative solutions are emerging from time to time. American tech giants dominate the cloud, professional software, social networks, streaming, and payments, capturing nearly 80% of the digital expenditures of large European companies.
On the other hand, an equally concerning actor looms: China. But on other fronts, particularly in e-commerce, Beijing can rely on its giants: Temu, Shein, and AliExpress. For example, estimates suggest that nearly 600,000 packages per day are shipped to Germany by Shein and Temu. In another area opened by China, social networks, TikTok, its flagship application, had over 200 million monthly active users in Europe in September 2025, with nearly one in three Europeans using it. In the EU alone, there were between 169 and 178 million users, with a growth of 8 million in six months.
Europe Caught Between Two Fires?
However, it is essential not to treat the United States and China in the same way. “The foundation of the relationship with China, notably in terms of security, is radically different,” notes Mathilde Velliet, a researcher at the IFRI Geopolitical Technologies Center. “We must be cautious when talking about European balancing between the United States and China, as there is no real equidistance. Europe is not at an equal distance between the two great powers: it is rather caught between two pressures from major technological powers.”
Americans have been warning their European allies for several years about the risks associated with dependence on Chinese infrastructure, particularly in telecommunications. With China emerging as a major technological power, influencing Europe in high-value-added industries, “there is a growing desire to be more cautious in exchanges,” adds the expert. However, this willingness is not uniformly shared among all member states, and each country pursues its own priorities.
Amid this latent Chinese pressure, there are more direct actions by the American administration. A recent diplomatic cable, signed by Secretary of State Marco Rubio, instructs American diplomats to actively lobby against European laws on “data sovereignty” and “data localization,” which require the local storage of European data and regulate tech giants.
“There is a risk that the highly aggressive American campaign, with pressures to deregulate all tech and digital sector oversight in Europe, may backfire. This could encourage everyone to adopt a firmer stance on digital sovereignty, even among states that initially did not support this approach,” warns Mathilde Velliet.
For Axel Voss, a European parliament member of the legal affairs committee, technological sovereignty must not be confused with complete isolation. “In my view, technological sovereignty does not mean isolation but the ability to act independently when necessary. Europe must reduce its excessive dependencies while remaining open to cooperation with trustworthy partners.”
His parliamentary work, focusing on digital and legal issues, highlights the need for a balanced European strategy: protecting its interests and infrastructure while maintaining relationships with reliable allies. To protect its technological interests, Europe needs European players capable of standing together, especially in a field that is currently challenging for many analysts.
Cloud, the New Battle of Data
The core of the battle for sovereignty lies in a critical battle: data. This issue has become “existential” as it conditions the digital, economic, and geopolitical independence of nations. In 2026, the cloud landscape is still dominated by an American oligopoly led by Amazon Web Services (AWS), Microsoft Azure, and Google Cloud.
These “hyperscalers” now control over 70% of the European market, exposing sensitive data (health, defense, artificial intelligence) to extraterritorial laws such as the American Cloud Act and cyber threats. Since the cloud drives AI and innovation, this increased dependence ultimately hinders local competitiveness.
Facing awareness on the subject, several European states are now pushing for the development of sovereign clouds. This is a way to regain control over essential infrastructure for the economy. “Our entire French economy, and even the entire European economy, almost exclusively relies on foreign technologies. In the world of the cloud, a huge part of clouds are American. When your economy runs entirely on technologies you don’t control, it weakens you,” analyzes Sebastien Lescop, General Director of Cloud Temple.
This dependence is even more problematic as it is often challenging to measure. “Dependence is invisible. Because when you use, for example, a proprietary AWS database technology, you develop your entire application around this database. So the cost of leaving is the cost of redeveloping your application. And that is a significant and real cost,” he adds.
For industry actors, digital sovereignty is no longer an option. “Complete sovereignty requires legislative, operational, and technological independence,” emphasizes Philippe Miltin, head of Outscale, Dassault Systèmes’ sovereign cloud. In a context of increasing geopolitical tensions, external pressures are becoming more visible: “The United States has clearly indicated that they want to counter European digital sovereignty initiatives… what is new is that their position is less ambiguous than before.”
And the risks are tangible: “If you are dependent on Americans, Chinese, or Russians, they can multiply prices overnight.” This urgency is reinforced by a broader strategic shift. Between Donald Trump’s antics, the Greenland crisis, and various American initiatives aimed at countering European sovereignty ambitions, it is challenging to ignore the pressures exerted by Washington.
“The Americans’ goal is to maintain their digital hegemony… so there is a psychological aspect: accepting that they are not necessarily always our allies,” notes Philippe Miltin.
Nevertheless, the sovereign dynamic is set in motion: “There is a way to go, but gradually each country is beginning to understand the need for digital sovereignty and that we are capable of implementing it.
Europe Still Has Cards to Play
Ultimately, is Europe really left behind? Not necessarily. The challenges are plentiful, but the Old Continent still holds some cards in its hand. Europe relies on a set of infrastructures and regulatory frameworks to reinforce its digital sovereignty, notably by developing sovereign clouds and local data infrastructures within the EU, with initiatives like Gaia-X promoting data interoperability controlled by European standards.
It also plans to triple its data center capacity and promote public policies supporting European providers to reduce dependence on foreign actors while structuring digital market standards specific to Europe. For example, in January 2026, the European Council modified the regulation of the Joint Undertaking for High Performance Computing in Europe (EuroHPC) to support the creation of AI gigafactories on the continent and establish a quantum technology hub, thus strengthening European competitiveness through public-private partnerships, “while protecting the interests of startups and growing companies.
Furthermore, the EU relies on ambitious legislation, including the General Data Protection Regulation, to regulate technological development and protect sensitive data while seeking to coordinate a common strategy in the face of geopolitical and economic challenges.
“I am convinced that this regulation is part of Europe’s normative power and ensures that technological development aligns with our democratic values. It establishes fair competition and prevents market abuses by dominant actors,” elaborates MEP Axel Voss.
But for the German politician, “we must ensure that the regulations continue to promote innovation and do not impose disproportionate constraints on European innovators.”
“We are strong enough in Europe to initiate, we have many ideas… what we need is to converge, focus on a few initiatives, and turn them into common tools. Today, catching up with American clouds, for example, is a generational battle… it takes 20 years of consistency with steady directions. But we are on a good trajectory,” concludes Sebastien Lescop, General Director of Cloud Temple.
In essence, Europe has all the necessary assets today to ensure its digital and industrial sovereignty. From tech talents to cutting-edge infrastructure, the cards are indeed in hand. What remains now is the most crucial step: a common (and profound) political will to finally lay them on the table and transform this potential into an autonomous power.
