EU considers restricting US cloud providers from sensitive government data

The European Commission is considering rules that would restrict US cloud platforms (AWS, Microsoft Azure, Google Cloud) from processing sensitive EU government data in financial, judicial, and health sectors. The 'Tech Sovereignty Package' expected on May 27 includes the Cloud and AI Development Act (CADA) and Chips Act 2.0. US cloud providers hold approximately 85% of the European cloud market. The restrictions would not ban US providers entirely but limit their use for sensitive government data processing. The US CLOUD Act (2018) allows US law enforcement to request data from US companies regardless of where data is stored, creating GDPR conflicts.