The EU Data Act (Regulation (EU) 2023/2854) aims to reduce reliance on US hyperscalers like AWS, Azure and Google Cloud by mandating robust interoperability, transparent migration paths and waiver of switch fees from 2027. It demands open APIs and enforced exit capabilities to increase infrastructure flexibility. Providers must remove proprietary barriers and publish migration techniques. From September 2025, new contracts face these rules, fostering a secure, competitive European cloud landscape.
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European Cloud Infrastructure Remains Dependent On US Hyperscaler Platforms
Enterprises operating cloud infrastructure in Europe predominantly rely on American hyperscale platforms, with AWS, Azure, and Google Cloud holding entrenched market positions. Proprietary functions such as AWS Lambda, BigQuery, and Azure App Services streamline development but inadvertently lock organizations into vendor ecosystems. Even services marketed as portable, like Amazon S3, enforce financial ties through intricate pricing structures. Consequently, migration efforts remain technically challenging, cost-prohibitive, and entail strategic and operational risks.
High egress costs reinforce proprietary formats driving vendor lock-in
Vendor lock-in arises from proprietary data formats, incompatible APIs, and opaque migration paths. Initially, organizations embraced open standards, yet over time, proprietary SDKs and added services infiltrated application architectures, creating strong dependency. Elevated egress fees for data retrieval from platforms such as Amazon S3 exacerbate the situation, rendering cloud exit strategies economically prohibitive. Consequently, enterprises accept these constraints, trading long-term flexibility for convenience, until regulatory or competitive pressures force re-evaluation.
Article 23 mandates interoperability, migration disclosure for cloud contracts
Article 23 of the EU Data Act mandates cloud providers to guarantee interoperability and publicly disclose all migration techniques, preventing proprietary formats and opaque APIs from securing exclusive control by major hyperscalers. Providers are required to proactively eliminate existing technical and contractual obstacles to facilitate lawful switching between services. These obligations apply to every new agreement concluded after the Regulations entry into force in September 2025, reshaping cloud portability standards
January 12 2027 providers must cover all migration costs
From January 12th, 2027, providers must cover all customer data migration expenses, eliminating egress fees. By transferring the cost to service operators, enterprises can forecast IT budgets more reliably and mitigate unforeseen financial outlays during platform transitions. This legislation strengthens corporate leverage in negotiations with dominant US hyperscale providers and reduces potential exit liabilities. Ultimately, organizations benefit from enhanced certainty and a fortified position when considering cloud platform shifts effectively.
Data Act Drives Cloud Portability With Modular Open Interfaces
Organizations launching new cloud services must prioritize portability early in the process. Design decisions around modular architectures, open interfaces and standardized data formats become critical factors that drive future migration ease. Regulatory bodies mandate robust exit strategies, but technical prerequisites were previously lacking in many environments. The EU Data Act introduces guidelines that require providers to facilitate smooth transitions, enabling businesses to plan hybrid deployments and map out multi-cloud roadmaps.
Data Act Empowers European Cloud Alternatives, Reducing Migration Barriers
European cloud providers are poised to benefit from the Data Acts regulatory incentives by gaining momentum as switching processes become simpler and more cost-effective. Industry players such as IONOS, OHVcloud and Open Telecom Cloud stand to emerge from relative obscurity as viable alternatives to major hyperscalers. This renewed competitiveness bolsters the internal market, fostering innovation, and increasing service variety and diversity across the European cloud ecosystem, and overall business resilience.
Identify cloud cost drivers, audit contracts, plan migration tests
Organizations must identify cloud cost drivers, review existing contracts for any migration restrictions, and schedule early migration tests to uncover technical dependencies and performance issues. Chief Technology Officers should design data products on open standards and embed exit scenarios both technically and organizationally. This approach converts compliance tasks into strategic assets that drive future-proof, agile cloud architectures instead of reactive rebuilds under time pressure. It ensures long-term flexibility, cost efficiency.
EU Regulation Drives Flexible, Competitive, Innovation-Friendly European Cloud Infrastructure
The EU Data Act defines a binding structure that reshapes Europes cloud infrastructure by dismantling technical, financial barriers, enforcing transparent migration processes, and driving interoperability. It compels hyperscalers to open their APIs and eliminate egress charges, thereby increasing organizations bargaining power. As a result, enterprises can adopt multi cloud strategies easily, local providers gain market access, and the region ultimately benefits from a more adaptive, competitive, and innovation oriented cloud environment.
