Summary
The European cloud computing market is experiencing rapid expansion. Projections show the market is set to grow from USD 177.14 billion in 2025 to an estimated USD 525.42 billion by 2032[1]. While large United States-based cloud companies, often called hyperscalers, dominate the market, many businesses are recognizing the strategic importance of choosing EU cloud providers.
This shift is driven by a growing need for data sovereignty, which means keeping data under the control of a country's own laws. Businesses also seek providers that can guarantee stringent compliance with the General Data Protection Regulation (GDPR), offer enhanced security, and provide specialised services with local support.
The European Cloud Market Landscape in 2026
Unpacking the Market: US Dominance vs. European Growth
The current cloud market in Europe is largely controlled by US hyperscalers like Amazon, Microsoft, and Google. These providers hold about 70% of the European cloud market[2].
Although the overall market share of European providers has declined in past years, they are now stabilising. These companies are finding success by focusing on specific niches and areas where they can offer unique value instead of competing directly with the massive scale of US giants[3].
Why European Businesses Are Choosing EU Providers
There are several compelling reasons why businesses in Europe are increasingly turning to local cloud providers.
- Data Sovereignty and GDPR Compliance: For many organisations, the most critical factor is ensuring that all business and customer data stays within the legal framework of the European Union. This avoids any exposure to foreign laws that could compromise data privacy. Companies like Ringover demonstrate a strong commitment to GDPR and security by hosting all data in centres located within France.
- Enhanced Security and Local Hosting: Hosting data locally within the EU has practical benefits, such as lower latency (faster data transfer speeds) and adherence to the region's high security standards.
- Specialised Solutions: Many EU providers excel by offering services tailored to specific industries, like finance or healthcare, or specific business functions, such as unified communications. This contrasts with the one-size-fits-all approach of larger providers.
- Local Support and Expertise: Accessing technical and customer support in the local language and time zone is a significant advantage. It allows for quicker problem resolution and a better understanding of a business's specific needs.
Comparison Table: Leading EU Cloud Providers
| Provider | Best For | Key EU-Centric Features | Pricing Model |
|---|---|---|---|
| Ringover | Businesses of all sizes needing a powerful, compliant business phone system and contact centre solution. | Data centres in France, full GDPR compliance, local support, unlimited calling to 110 international destinations. | Per user/month, with clear tiers for various cloud telephony needs. |
| OVHcloud | Tech-savvy businesses and developers looking for cost-effective and scalable IaaS. | Data centres across Europe, commitment to data reversibility, strong European data protection. | Pay-as-you-go and monthly subscriptions. |
| SAP | Large enterprises needing integrated ERP, PaaS, and business process solutions. | Deep industry expertise, strong data governance, EU-hosted cloud ERP solutions. | Custom enterprise licensing. |
Top EU Cloud Providers to Watch in 2026
Ringover: Leading the Way in EU-Based Unified Communications (UCaaS)
Ringover is a leading European provider that specializes in business phone system and artificial intelligence for businesses of all sizes. It offers a complete suite of features, including one of the best cloud PBX systems, an omnichannel contact centre for managing customer interactions across multiple channels, advanced call management features, and AI analytics, summaries, and transcriptions.
A key benefit for companies with global reach is that Ringover provides unlimited calling to over 110 destinations. The company is deeply committed to the European market, making significant investments in research and development to enhance its product offerings with cutting-edge AI. This dedication to innovation is part of its vision to reshape business communications.
Top European IaaS & PaaS Cloud Providers
In the Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) markets, a few European companies stand out.
- SAP & Deutsche Telekom: These two German companies are the top European providers in the IaaS and PaaS space. Each holds a 2% share of the European cloud market[2].
- OVHcloud: A major French provider, OVHcloud is a key player in the European IaaS market. It is known for its competitive pricing and powerful bare-metal servers.
- Scaleway: Another strong French contender, Scaleway offers a complete ecosystem of cloud services, ranging from computing power to storage solutions.
Notable European Cloud Specialists Recognized by Gartner
While US firms lead in overall market size, several European specialists are recognized as global leaders in their specific fields.
- Frends: Frends is one of just two European vendors featured in the Gartner® Magic Quadrant™ for Integration Platform as a Service (iPaaS). This highlights its strength in enterprise automation and integration[4].
- Nordcloud: As a leading European managed service provider, Nordcloud is listed in the Gartner® Magic Quadrant™ for Public Cloud Infrastructure. It specializes in helping businesses manage their workloads on major platforms like AWS, Azure, and GCP[5].
Key Criteria for Selecting an EU Cloud Provider
When evaluating potential EU cloud providers, businesses should consider the following criteria to make an informed decision.
- Data Hosting and Infrastructure: Confirm that all of the provider's data centres are physically located within the EU. For example, Ringover manages its own network and hosts all data exclusively in France.
- Compliance and Certifications: Look for key certifications that prove a provider's commitment to security and privacy. These include ISO 27001 for information security management and industry-specific credentials like HDS for healthcare data.
- Scalability and Performance: The provider must be able to scale its services—both up and down—to meet your changing business needs without a drop in performance.
- Security Measures: Essential security protocols should be standard. This includes end-to-end encryption for communications (like DTLS-SRTP for calls), robust firewalls, and regular, independent security audits.
- Integration Capabilities: A provider should be able to connect its services seamlessly with your existing business tools, such as CRM software or helpdesk platforms. Ringover offers a wide range of integrations and advanced call centre technology to create more efficient, unified workflows.
Conclusion: Making the Right Cloud Choice for Your Business
While US hyperscalers offer enormous scale, EU cloud providers deliver essential value through data sovereignty, specialised services, and local expertise. For critical business functions like communication, choosing an EU-native provider is not just a preference but a strategic decision.
Partnering with a provider like Ringover ensures that your business benefits from a solution that is compliant, secure, and designed for the unique needs of the European market. To discover how a European cloud communications solution can empower your business, explore what Ringover has to offer with a free trial.
EU Cloud Providers FAQ
Are there any European cloud providers?
Yes. Europe has several well-established cloud providers, including OVHcloud (France), Scaleway (France), IONOS (Germany), Aruba Cloud (Italy), and Deutsche Telekom / T-Systems (Germany), among others.
Who are the top 5 cloud providers?
Globally, the “top” providers are typically the big hyperscalers: AWS, Microsoft Azure, and Google Cloud, followed by other major players depending on how you measure “top” (revenue, market share, regions served, or enterprise adoption). In the UK specifically, regulators have noted that AWS and Microsoft together hold a very large share of the cloud services market.
What is the EU version of AWS?
There isn’t a single one-to-one “EU AWS.” Instead, you’ll usually see a shortlist of European hyperscaler alternatives depending on your needs:
- OVHcloud for European-hosted public cloud and infrastructure services
- Scaleway, IONOS, and Aruba Cloud as other Europe-based options (often chosen for EU/EEA hosting, support proximity, and sovereignty goals)
The “best EU version” depends on whether you need IaaS/PaaS scale, managed services depth, sovereign controls, or specific compliance requirements.
Is there a European alternative to Google?
If you mean an alternative to Google Cloud, yes—European providers like OVHcloud, Scaleway, IONOS, and Aruba Cloud are commonly considered.
If you mean an alternative to Google (Search/Workspace), that’s a different category (search engines and productivity suites), and the alternatives will vary by use case (privacy-first search vs. enterprise collaboration).
Citations
- [1]https://www.fortunebusinessinsights.com/europe-cloud-computing-market-113911
- [2]https://www.srgresearch.com/articles/european-cloud-providers-local-market-share-now-holds-steady-at-15
- [3]https://www.techradar.com/pro/more-data-shows-eu-cloud-companies-are-struggling-to-compete-with-us-giants
- [4]https://frends.com/press/europes-frends-recognized-for-the-3rd-time-in-gartner-magic-quadrant-for-ipaas
- [5]https://nordcloud.com/blog/nordcloud-listed-in-gartner-magic-quadrant-for-public-cloud-infrastructure-managed-service-providers
Published on January 19, 2026.
