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EU to Restrict US Cloud Services for Government Data

5/8/2026

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Story summary
  • The European Commission will unveil a “Tech Sovereignty Package” on May 27 that could limit U.S. cloud services for government data.
  • The proposals would require finance, justice and health sectors to use European cloud infrastructure and would bar foreign firms from processing highly sensitive data, leaving private-sector use unchanged.
  • Officials cite the U.S. Cloud Act of 2018 and trade disputes with President Donald Trump as drivers of digital sovereignty.