Industry-backed report estimates EU cloud shift could cost up to €233 billion

A report commissioned by the Computer and Communications Industry Association (CCIA) estimates that efforts to reduce reliance on foreign technology vendors could cost Europe €115 billion over the next decade. The report, by the European Center for International Political Economy (ECIPE), focuses on the proposed Cloud and AI Development Act (CADA).

The European Commission previously estimated costs of up to €18 billion over ten years. ECIPE’s €115 billion estimate is about 6.4 times higher. The report says restrictions favoring European cloud providers could raise operating costs, require customers to migrate workloads and prompt substantial software redevelopment.

ECIPE divides its estimate into €33 billion for the public sector and €80 billion for the private sector. The latter includes critical national infrastructure such as banking, healthcare, energy and transportation. Depending on the extent of EU measures, the report’s mid-level estimate could rise: its higher-end scenarios exceed €233 billion.

CCIA represents major US technology companies, including Amazon, Google and Meta, which have commercial interests in Europe. The group is lobbying policymakers to assess technology sovereignty based on risks rather than vendors’ nationality. CCIA Europe policy manager Mitchell Rutledge said the official assessment missed 70 percent of CADA’s impact and urged member states not to rely on what he called the Commission’s “incomplete estimates.”