A growing number of European organisations are ditching US software providers in a movement that’s come to be filed under the somewhat nebulous, umbrella term of ‘digital sovereignty’.
Digital sovereignty: definition, origin and history
Digital sovereignty is loosely defined as the ability of a governing body, such as a national government or a to control the tech stacks and data flows within its boundaries. For instance, in a digitally sovereign state, any data centres within its physical boundaries and locally hosted software are beholden only to the laws of that country.
To achieve digital sovereignty, countries or organisations typically adopt open-source tools rather than proprietary software. Open source allows for a greater degree of visibility and control than paid products, which frequently operate an opaque, ‘black-box’ model.
Since the dawn of digital products, with their often labyrinthine terms and conditions, debates have raged about who really owns their tech. Some governments, such as China’s, have paid close attention to how technology interacts with their national sovereignty. Ren Zhengfei, founder of Huawei, the enormously successful Chinese telecoms and hardware business, once said: “A country without its own program-controlled switches is like one without an army. Its software must be held in the hands of the Chinese government.”
But, in Europe, where the phrase digital sovereignty is gaining the most traction, discussions have been largely relegated to academic circles. That was until the Edward Snowden leaks in 2013, which showed that an alliance called ‘Five Eyes’, consisting of the UK, the US, Canada, Australia and New Zealand, was operating a global surveillance dragnet that used software and hardware to spy on businesses, politicians and ordinary citizens.
Yet it wasn’t until Donald Trump’s first presidency in 2016, characterised by economic protectionism, that the concept began to take root across Europe. Fast-forward to Trump’s second presidency and digital sovereignty is once again on the agenda – and, this time, it’s picking up steam.
Why digital sovereignty is trending in 2025
A multitude of technological, social and political factors have led to an inflection point for digital sovereignty this year.
Since ChatGPT exploded on to the scene, countries have tussled for AI supremacy. Governments now view AI as a national security issue, which means they are willing to take drastic measures to develop secure and sovereign capacity.
Trump kicked off his second presidency this year by threatening both foes and allies with tariffs. As it became apparent that 47th US president might be open to a quid pro quo, Silicon Valley firms began falling over themselves to sponsor his January inauguration, seemingly to curry favour.
A month later, JD Vance, the vice-president, delivered the disastrous ‘Munich speech’, in which he chastised EU politicians and civilians. His boss, meanwhile, threatened the EU over relatively heavy regulatory regime and suggested there would be consequences if Silicon Valley businesses were singled out for not adhering to the bloc’s stringent rules.
The instability of US-EU relations has alerted European governments to the dangers of their reliance on US technology. Undergirding all of the controversy is an important piece of US legislation called the Cloud Act, which decrees that US technology companies must surrender any data they hold if it is requested by US intelligence agencies.
Advocates for digital sovereignty say it is time to ditch US software. Relying instead on the world’s alternative tech powerhouse, China, comes with its own set of issues. So EU organisations are working to building domestic capacity to address Europe’s significant technology gap.
Digital sovereignty: what are the risks of inaction?
European advocates for digital sovereignty warn that modern digital economies cannot be completely independent from foreign companies when it comes to technology, tools and infrastructure. Consider the matter of energy security. When Russia invaded Ukraine in 2022, the country turned the gas taps off for much of Europe, plunging the continent into an energy crisis. Now, countries are working to ensure they have adequate domestic energy capacity.
The digital sovereignty movement is a similar effort to build security of domestic resources. Instead of energy, its focus is on tech stacks and data – the lifeblood of modern economies. Yet, for all the renewed interest, the movement is only in its infancy. US companies still dominate across Europe. There’s a long road to go to build out alternative hardware, from chips and devices to networks and data centres.
The first organisations to take action will likely be critical infrastructure operator – large businesses that need to guard their trade secrets and governments concerned about their digital sovereignty. But smaller businesses should care, too. Many of them run software-as-a-service models, meaning they are vulnerable to unexpected price hikes. They can vote with their wallets but, more often than not, they’ve run up major dependencies, intertwining critical processes with their software providers.
US firms are concerned about this growing movement. In response, the hyperscalers have launched supposedly ‘airgapped’ services to keep data sovereign to the territories where it is located. But, as long as the Cloud Act exists, entrusting the hyperscalers with sensitive data will be risky.
Digital sovereignty: examples in Europe and beyond
The northernmost German state, Schleswig-Holstein, is in the midst of a project to transition away from Silicon Valley. Schleswig-Holstein has dropped Microsoft completely and is investigating alternative hardware options, too, including Fairphones and Linux computers.
This ambitious, open-source data-sharing initiative has the backing of major European businesses including Airbus. The project aims to align European data flows with local laws and values. But there are whispers that it has been sabotaged by certain private sector interests. US big tech has allegedly flooded it with bureaucracy, seeking to halt any progress.
The EuroStack initiative is a set of policy proposals by academics, politicians, researchers and think-tanks. Its goal is to reduce the EU’s dependence on US technology companies. Doing so, say the project’s sponsors, could help solve the bloc’s tech-sovereignty problem and also make European economies more competitive.
A growing number of European organisations are ditching US software providers in a movement that’s come to be filed under the somewhat nebulous, umbrella term of 'digital sovereignty'.
Digital sovereignty: definition, origin and history
Digital sovereignty is loosely defined as the ability of a governing body, such as a national government or a to control the tech stacks and data flows within its boundaries. For instance, in a digitally sovereign state, any data centres within its physical boundaries and locally hosted software are beholden only to the laws of that country.
