(Reuters) - The CEO of OVHCloud, a leading European data centre provider that operates 43 facilities across four continents, said on Thursday that global trade tensions were making European companies rethink their choice of cloud provider from a more strategic perspective.
WHY IT’S IMPORTANT
Data centres and computing power are crucial in the global AI race as they are necessary technical bricks to train and operate AI models. Companies also utilise data centres and cloud solutions for various digital activities beyond AI applications.
The market is largely dominated by three U.S.-based hyperscalers: Amazon (NASDAQ: AMZN ) Web Services (AWS), Microsoft (NASDAQ: MSFT ) Azure and Google (NASDAQ: GOOGL ) Cloud. Amid the escalating trade war, questions are arising about European dependence on American digital solutions.
KEY QUOTE
"In the current geopolitical context, we are seeing a shift in the concerns of private companies and public organisations in Europe. Questions of strategic autonomy are now on CEOs’ agendas," CEO Benjamin Revcolevschi said in a quarterly earnings statement.
"The choice of a cloud provider is no longer just a technical matter, but also a strategic issue."
BY THE NUMBERS
OVHCloud’s main competitor Iliad, via its subsidiary OpCore that operates the group’s 13 data centres, is set to invest 3 billion euros ($3.4 billion) in AI infrastructure, specifically computing power and data centres.
WHAT’S NEXT
The comments by Revcolevschi and the large investments announced by Iliad signal a broader trend of European companies seeking to reduce dependence on U.S.-based digital solutions, which is likely to shape the strategic decisions of other companies in the region.
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