Non-US businesses want to cut back on using US cloud systems

Cloud, networking and internet
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  • Report claims one in three firms don't trust US Big Tech to handle their data correctly
  • Civo finds three in five are focused on improving data sovereignty
  • Tariff-induced cost fluctuations are also concerning UK IT leaders

More than three in five UK IT leaders say the country's government should stop using US cloud services due to security and economic risks, with many citing ongoing trade war-induced tariffs as a core concern.

A new report from Civo claims a similar amount (61%) of British IT leaders also cite data sovereignty as a strategic priority going forward, with a broader trend of data privacy emerging not just among cloud adoption but also relating to the use of artificial intelligence.

Today, nearly half (45%) are actively considering repatriating from the cloud as they turn back to environments that they have more control over.

Cloud security and cost worries

With EU and UK data protection regulations offering improved compliance and transparency, two-fifths of IT leaders say they're more likely to move away from US providers.

During a time when three of the world's leading hyperscalers (Amazon, Microsoft and Google) account for around two-thirds of the cloud market, Civo's report claims only one-third (36.6%) trust Big Tech AI providers to handle their data, with data sovereignty ranking second to price as an influencing factor for the decision to move away from Big Tech.

"People are more alert than ever to just how valuable their data is, and it’s been astonishing how quickly cloud repatriation and sovereignty have become leading strategic considerations for IT leaders," said Civo CEO Mark Boost.

"US providers are failing to meet [the] demand" for greater visibility over data storage and usage, Boost added, noting Europe leads the way in terms of sovereignty initiatives, urging the "UK to match the energy" of its continental counterparts.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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