Author: Florian Zandt
Source: t3n.de - Cloud Act Article
Publication Date: November 1, 2025
Summary Reading Time: 3 minutes

Executive Summary

The Cloud Act of 2018 enables US authorities to directly access data of European companies stored with US cloud providers, without involving German/EU authorities. This is exacerbated by "Gag Orders" that oblige providers to remain silent for 180 days. With Trump's return and the rapprochement of tech corporations with the US government, this law gains new explosiveness. Action Recommendation: Companies should evaluate European cloud alternatives and use the EU Data Act 2025 as a switching catalyst.

Critical Guiding Questions

How severely does the close interconnection between the Trump administration and Big Tech endanger the data security of European companies in the coming years?
Can the EU Data Act 2025 actually function as an effective counterweight to the Cloud Act, or do legal gray areas remain?
What competitive advantages emerge for European cloud providers when US services are increasingly perceived as security risks?

Core Topic & Context

The Clarifying Lawful Overseas Use of Data Act (Cloud Act) from 2018 allows US authorities extraterritorial access to data stored with US cloud providers - even on European servers. The current rapprochement between tech corporations and the Trump administration amplifies the relevance of this law for European data sovereignty.

Most Important Facts & Figures

• Cloud Act in effect since 2018 - enables data access "regardless of whether the communication is located within or outside the USA" • 180 days of confidentiality through "Gag Orders" - companies learn nothing about data access • Microsoft: ~30,000 government requests (July-December 2024), 60% led to data disclosure • Amazon AWS: ~1,500 information requests in the same period, no Cloud Act cases according to their own statements • EU Data Act takes effect September 2025 - intended to facilitate provider switching

Stakeholders & Affected Parties

Main Affected: European companies with data stored at Amazon AWS, Microsoft Azure, Google Cloud Cloud Providers: US tech corporations must balance between customer protection and US legal obligations Industries: Particularly critical for financial services, healthcare, public administration Regulators: EU Commission vs. US security agencies (FBI, NSA)

Opportunities & Risks

Risks:

Data Sovereignty: Loss of control over business-critical data
Legal Uncertainty: Circumvention of established EU-US mutual legal assistance agreements
Competitive Disadvantages: Sensitive business data could become accessible to US authorities

Opportunities:

Market Opportunity for EU Providers: OVHcloud, Nextcloud as alternatives
Strengthen Digital Sovereignty: Independence from US infrastructure
Compliance Advantage: Better GDPR conformity with European providers

Scenario Analysis: Future Perspectives

Short-term (1 year): Intensified review of cloud strategies by European companies. First pilot projects with EU providers. Possible tightening of Cloud Act application under Trump administration.

Medium-term (5 years): Significant market share shift in favor of European cloud providers. EU Data Act establishes itself as a switching catalyst. Possible bilateral data agreements between EU and USA.

Long-term (10-20 years): Emergence of "digital bloc formation" - separate US and EU cloud ecosystems. European tech sovereignty achieved as strategic goal. New international standards for cross-border data protection.

Action Relevance

Immediate Measures:

Cloud Audit: Inventory of sensitive data with US providers
Risk Analysis: Assessment of criticality of affected data stocks
Alternative Evaluation: Review of European cloud services

Strategic Planning:

Utilize EU Data Act: Facilitated provider switching from September 2025
Hybrid Strategies: Combination of US and EU cloud services depending on data sensitivity
Compliance Update: Adaptation of data protection guidelines

Source Directory

Primary Source:

Cloud Act and Data Sovereignty - t3n.de

Supplementary Sources:

Verification Status: ✅ Facts checked on November 1, 2025