- European Cloud IaaS Growth to Surpass China and North America
- Europe will even surpass North America in terms of dollars spent
- Only 20% of current workloads will be changed for now – the scale is enormous
According to new projections from Gartner, global sovereign cloud IaaS spending could increase from $59.3 billion in 2025 to $80.4 billion in 2026 before reaching $110.6 billion in 2027, a two-fold increase, but one geography is leading the way on this front.
Set to grow from $6.7 billion in 2025 to more than $23.1 billion in 2027, European sovereign spending on Cloud IaaS will more than triple over the same period, highlighting a huge appetite for more local solutions.
This puts Europe’s growth (the third largest region in terms of dollars spent, behind North America and China) well ahead of the world’s other two superpowers, with growth roughly twice as high.
Europe leads in sovereign cloud spending
Although Europe lags slightly behind other regions of the world, Europe is about three times larger (in terms of spending) than all other regions combined, so it has much greater influence globally.
In fact, growth is expected to be so high that Europe is expected to overtake North America for second place as soon as 2027, with governments, regulated industries and essential services most likely accounting for the bulk of migration.
However, despite massive growth, Gartner expects only about a fifth of current workloads to be moved from global hyperscalers to local or regional cloud providers, suggesting this is a much longer-term shift.
“To compete with local customers’ cloud businesses, large cloud providers must seriously consider each country’s sovereignty concerns and requirements and act accordingly,” wrote René Buest, principal analyst director.
Gartner analysts are not the only ones expecting significant growth in Europe. Forrester predicts that European technology spending will reach €1.5 trillion for the first time in 2026, driven by demand for AI, cloud, cybersecurity and, of course, sovereignty.
“Europe’s emphasis on technological sovereignty will likely reshape supplier dynamics and infrastructure choices in the years to come,” wrote forecast analyst Michael O’Grady.
Follow TechRadar on Google News And add us as your favorite source to get our news, reviews and expert opinions in your feeds. Make sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp Also.
