Complete Guide to European Cloud Analytics Solutions 2025

European businesses are facing renewed uncertainty

A robust cloud-based analytics solution is a must, but large-scale cloud data warehousing remains dominated by US-based providers. Ongoing political and legal developments—such as the potential obsolescence of the EU-US Data Privacy Framework under a new Trump administration—add to the confusion. Meanwhile, European privacy legislation requires companies to use viable solutions from European data centers. But where are they?

In this guide we give a comprehensive overview of the European-based options available, how far advanced they are compared to their US counterparts, and if you should consider moving your analytics architecture to them.

Should I Move to European-based Cloud Analytics?

The answer isn't one-size-fits-all and depends on your organizational priorities.

If compliance with GDPR and data sovereignty are critical, a European cloud might align better with your regulatory needs. However, you may also face trade-offs in service maturity, performance, and the breadth of features compared to well-established US providers.

For companies with robust technical capabilities and a willingness to invest in custom analytics solutions, the European landscape offers promising, albeit still evolving, alternatives. Your decision should balance risk tolerance, operational demands, and long-term strategic goals.

Data Privacy Agreements: Impacts on Cloud Choices

The General Data Protection Regulation (GDPR) imposes strict requirements on transferring personal data outside the European Economic Area (EEA). For years, companies relied on mechanisms like the Privacy Shield. However, the Court of Justice of the European Union (CJEU) invalidated it in 2020 with the Schrems II ruling, leaving businesses scrambling for alternatives.

In response, the EU-US Data Privacy Framework (DPF) was introduced in 2023 to replace the Privacy Shield and provide a new basis for transatlantic data transfers. Yet, recent political shifts in the US—particularly with Trump’s return to office—could jeopardize this framework once again. If overturned, European companies using US-based cloud providers (such as AWS, Google Cloud, or Microsoft Azure) may once more face legal uncertainty regarding GDPR compliance.

Given these uncertainties, organizations may soon need to re-evaluate their cloud strategies, especially for analytics and data warehousing. This raises a key question: Are viable European alternatives emerging?

The State of European Cloud Provider

European cloud providers have not yet developed a fully hosted analytics solution comparable to BigQuery, Redshift, or Snowflake. However, several promising developments could eventually offer viable alternatives to the comprehensive product offerings of the major US providers.

While AWS, Google Cloud Platform, and Azure offer a broad range of services, this discussion focuses on analytical capabilities and current or emerging European alternatives.

Existing European Cloud Providers

Several European cloud providers have emerged, primarily focusing on infrastructure rather than full analytics solutions. Examples include:

• OVHcloud (France): One of the largest European cloud providers, offering IaaS and PaaS solutions. While OVHcloud provides strong infrastructure capabilities, it does not yet offer a fully managed analytics stack.

• Hetzner (Germany): A cost-effective European alternative for cloud computing, but lacks managed analytics services.

• Scaleway (France): Offers computing and storage solutions, but is still not an out-of-the-box competitor to US-based cloud data warehouses.

These providers primarily focus on general-purpose cloud computing rather than offering the fully managed analytics services that businesses have come to expect.

European Projects in Development

While no European provider currently matches the capabilities of BigQuery or Snowflake, some initiatives are moving in that direction:

• STACKIT (Germany): Backed by Schwarz Group (the parent company of Lidl), STACKIT is building a European cloud ecosystem. Though primarily focused on infrastructure, it is one of the more promising players in the EU cloud landscape and is investing heavily in AI. 

• Clever Cloud (France): A managed PaaS provider with a growing interest in data hosting and processing.

Although these solutions do not yet offer a fully managed analytics stack comparable to their US counterparts, their growth and development are worth monitoring.

One to Watch: Gaia-X

Although Gaia-X is not a cloud provider, it is a significant European initiative aimed at creating an open, interoperable cloud ecosystem. Still in development, Gaia-X intends to establish a federated European cloud infrastructure, providing centralized access to the capabilities of various European providers that individually might not offer a complete set of services. As these providers evolve, the value of Gaia-X in the analytics landscape will likely increase.

Can I Build an Analytics Stack on a European Cloud?

In theory, you can build and manage your analytics stack using European cloud infrastructure if you prioritize compliance and are willing to invest in additional engineering resources. This approach might involve setting up either:

• An open-source solution like Apache Druid, ClickHouse, or DuckDB, or

• A licensed package like Exasol or Vertica.

This route requires significant technical expertise and ongoing operational maintenance, as these systems must be managed, scaled, monitored, and updated regularly. Many businesses choose fully managed services like BigQuery and Snowflake to avoid this complexity. However, some companies opt for this route to mitigate compliance risks.

Challenges for European Cloud Providers

Several factors explain why European providers have not yet built strong alternatives to US-based cloud data warehousing solutions:

• Investment and Scale: Hyperscalers like AWS, Google Cloud, and Microsoft Azure have invested billions in R&D and infrastructure—a scale that European providers have yet to match.

• Market Demand: Most businesses, even within the EU, continue to use US-based cloud services due to their maturity, reliability, and ease of use.

• Technical Complexity: Developing managed analytics services requires integrating data storage, query optimization, machine learning, and security features—a complex undertaking.

• Network Effects: US providers have built extensive ecosystems around their platforms, making migration difficult for European alternatives.

Key Takeaways

1. Compliance Drives the Shift:

European data privacy laws like GDPR force businesses to reconsider cloud strategies, emphasizing data sovereignty and legal compliance over convenience.

2. US Dominance vs. European Emergence:

While US providers (e.g., AWS, Google Cloud, Azure) lead in managed analytics solutions, European providers are gradually developing alternatives, though they currently lag in fully hosted analytics offerings.

3. Current European Options:

Existing players like OVHcloud, Hetzner, and Scaleway focus on infrastructure rather than complete analytics stacks, while emerging projects like STACKIT, Clever Cloud, and the Gaia-X initiative show promise but remain in early development.

4. Custom Solutions Are an Option:

Companies with robust technical resources can build their analytics stack on European cloud infrastructure using open-source or licensed tools. However, this approach demands significant engineering investment and ongoing maintenance.

5. Tailor Your Strategy to Your Needs:

The decision to move should balance compliance priorities, risk tolerance, and operational capacity. Businesses may choose to stick with established US providers (using legal safeguards), shift to European solutions for stricter compliance, or monitor evolving European alternatives.

Next Steps: Stay, Move, or Monitor

If compliance with GDPR and data sovereignty are critical, moving to a European cloud provider might seem like the right decision. However, the trade-offs in usability, performance, and available features must be carefully considered.

There are three paths available:

• Stay: If you need a fully managed, scalable analytics solution, staying with US-based providers—and ensuring compliance through Standard Contractual Clauses (SCCs) or similar legal mechanisms—is likely the best option.

• Move: If compliance and data sovereignty are your top priorities, you might consider migrating to a European infrastructure provider and building a custom analytics stack, provided you are prepared for increased complexity and resource demands.

• Monitor: If you are waiting for a mature European alternative, keep an eye on emerging providers like STACKIT, Gaia-X, and Clever Cloud, although they remain in the early stages.

Final Thoughts

Ultimately, the decision to move to a European cloud provider for analytics depends on your risk appetite, technical capabilities, and regulatory obligations.

With ongoing legal and political uncertainties, organizations must decide whether to maintain their current setups with potential compliance risks or invest in emerging European alternatives that currently lack the benefits of managed cloud data warehouses.

Keep monitoring developments in both data privacy regulations and European cloud capabilities, as rapid changes may require swift adjustments to your strategy.

FAQs

What is cloud analytics and how does it benefit businesses in Europe?

Cloud analytics refers to the use of cloud computing to process, store, and analyze data at scale. For European businesses, cloud analytics enables greater flexibility, real-time insights, and cost efficiency compared to traditional on-premise solutions. It also supports remote work, scalability, and advanced AI-driven data processing, helping organizations make informed, data-driven decisions.

What are the key compliance considerations for cloud analytics in Europe?

European businesses using cloud analytics must comply with GDPR and other data sovereignty regulations. This includes ensuring data is processed within the EU or through providers that meet GDPR’s legal transfer mechanisms. Organizations should assess where cloud providers store and process data, as well as implement encryption and anonymization techniques to enhance compliance.

What are the main challenges of adopting cloud analytics in Europe?

Key challenges include:

• Data Privacy & Compliance: Ensuring GDPR adherence while leveraging cloud-based analytics tools.

• Vendor Lock-in: Difficulty migrating data if switching providers.

• Integration Complexity: Connecting cloud analytics platforms with existing on-premise systems.

• Security Risks: Protecting sensitive data against cyber threats in a cloud environment.

Organizations need a clear cloud strategy to mitigate these challenges and select the right provider.

Which industries in Europe benefit most from cloud analytics solutions?

Cloud analytics is widely used across multiple sectors, but it is particularly transformative in:

• Finance & Banking: For fraud detection, customer insights, and regulatory reporting.

• Healthcare & Life Sciences: For patient data analysis, research, and operational efficiency.

• Retail & E-commerce: For demand forecasting, personalized marketing, and inventory management.

• Manufacturing & Logistics: For supply chain optimization and predictive maintenance.

The ability to analyze vast amounts of data in real-time is a game-changer for these industries.

How do I choose the best cloud analytics provider in Europe?

When selecting a cloud analytics provider, consider:

• Compliance & Data Residency: Ensure the provider meets GDPR and data sovereignty requirements.

• Scalability: Choose a solution that grows with your business needs.

• Feature Set: Compare analytics capabilities, including AI/ML integration, real-time processing, and data visualization tools.  

• Cost & Pricing Model: Evaluate transparent pricing structures to avoid unexpected costs.

• Customer Support & SLAs: Look for reliable customer service and strong service level agreements (SLAs) to ensure uptime and performance.