EU Limits U.S. Cloud for Sensitive Data

The European Commission is preparing a 'Tech Sovereignty' package that would require certain categories of government data (for example financial, judicial and health records) to be processed on European cloud capacity, and would limit the use of cloud platforms operated by companies outside the EU for those sensitive workloads. The proposals stop short of blanket bans but would carve procurement rules and hosting requirements by sensitivity level, reshaping who can win public contracts. — If adopted, the rules would reshape the transatlantic cloud market, force new data‑sovereignty investments in Europe, and turn cloud procurement into a geopolitical lever between the EU and the U.S.