One of the most critical parts of any AI effort is the data used to train models and to draw from when running them or answering questions. For most nations and large enterprises, that data is stored using cloud database services. The complication is that most nations and many enterprises have stringent data privacy and protection laws or rules they must follow.
Virtually all global hyperscalers address these concerns by offering sovereign versions of their cloud services to meet those requirements. Such offerings typically store data within the country’s physical boundaries and provide extensive data management tools to control access and protect it to the extent required by that nation’s laws.
The trouble with such sovereign services is that while the data is theoretically under the control and protection of each nation, it can be obtained by the U.S. In particular, the U.S. Clarifying Lawful Overseas Use of Data (CLOUD) Act, a 2018 federal law, allows United States law enforcement to compel U.S.-based technology companies to hand over customer data via a warrant or subpoena, no matter where that data is physically stored.
See also: Exploring the Sovereign AI Aspects of Inference Servers
Why are European Organizations Moving to Local Cloud Providers?
Given today’s strained geopolitical tensions, many are uncomfortable with the exposure the CLOUD Act represents. This is leading many nations to rethink their use of sovereign offerings from U.S-based hyperscalers.
A Gartner survey found that 61 percent of European CIOs and tech leaders want to increase their use of local cloud providers. More than half said that geopolitics will “prevent them from leaning further on US-based hyperscalers.”
Additionally, an Accenture report indicates that 62% of European organizations are actively seeking sovereign solutions (including sovereign cloud and sovereign AI) because of geopolitical uncertainty and data-control concerns.
See also: Sovereign AI and Sovereign Cloud Are Converging
Which Homegrown Sovereign Cloud Providers Are Alternatives to U.S. Hyperscalers?
This is leading many nations and enterprises to look for native providers. That includes companies like ThinkOn in Canada. It also includes Exoscale, Ionos, OVH, Scaleway, and Upcloud in Europe. Most of these companies offer a smaller portfolio of services compared to global hyperscalers. However, they provide the additional assurance that data is out of the reach of U.S. agencies.
Key Takeaway: Geopolitical tensions are raising concerns about the use of sovereign services provided by U.S.-based hyperscalers. If you are a nation or large international enterprise undertaking new AI efforts that use local data, look for local cloud database service alternatives that are not subject to the 2018 U.S. CLOUD Act.
See also: Sovereign AI Explained: How and Why Nations Are Developing Domestic AI Capabilities
How Are Governments Responding? The EU Technological Sovereignty Package and Open-Source Shift
Beyond cloud database services, heads of government are increasingly concerned about relying on American technology for all aspects of their digital operations. The recent sanctioning by the U.S. of International Criminal Court (ICC) judges, which led to the judges being locked out of their ICC and personal email accounts, led some nations and the EU to speed up digital sovereignty efforts.
In that case, one judge had her Apple ID, iCloud, Amazon, Airbnb, PayPal, and other accounts blocked or canceled. These cancellations happened overnight without warning, according to Justiceinfo.net.
Such actions are fueling deep mistrust of U.S. digital services. There is a sense that, at the President’s whim, services can be disrupted instantly, with no recourse or appeals process.
To address this issue, the European Commission launched the EU Technological Sovereignty Package to strengthen the EU’s digital autonomy. With the sovereignty package, the EU proposed new rules intended to bolster homegrown chips, AI, and cloud services and reduce dependence on products and services from the U.S. and China.
Additionally, France, Germany, Denmark, the Netherlands, and others have all started efforts to move office applications and systems to open-source alternatives.
