A looming hyperscaler exodus? UK IT leaders are thinking of ditching US cloud providers – here’s why
More than half of UK IT leaders using public or hybrid cloud setups say they’re planning to ditch US cloud providers, according to new research from Asanti.
A study by the colocation provider found that 95% of IT leaders are growing concerned over data sovereignty risks amid political uncertainty on both sides of the Atlantic.
The study specifically highlighted “increasing influence of global politics on IT infrastructure” as a key factor in the shift away from US providers, with 52% of respondents now taking “strategic steps” to reduce their exposure to American tech firms.
Similarly, 45% of IT leaders currently using US public cloud platforms plan to limit their data’s exposure to US jurisdiction.
Stewart Laing, CEO of Asanti, said the study highlights that cloud provider options are “no longer just about performance or cost” and that IT leaders are now focusing heavily on “trust, control, and strategic sovereignty”.
“Organizations are becoming more aware and more wary of where their data is stored and who has jurisdiction over it,” he said.
Changing data sovereignty considerations come amid a period of growing uncertainty about the US government’s influence over cloud providers.
Earlier this year, Microsoft president Brad Smith revealed the tech giant could resort to legal action if met with shutdown demands by the Trump administration.
Smith’s comments on the matter came in response to a memorandum signed by President Trump to defend US businesses from what the administration described as “overseas extortion”.
The memorandum highlighted EU regulations such as the Digital Markets Act (DMA) as one of the threats facing US enterprises.
Tensions between the US government and European lawmakers on this front have prompted a shift among hyperscalers, however.
Microsoft recently unveiled sweeping data sovereignty rules for European enterprises while competitors such as Google Cloud and AWS have also introduced new policies aimed at alleviating concerns among businesses in the region.
UK IT leaders are becoming skittish
Asanti’s research on this issue is the latest in a string of surveys highlighting the growing sense of unease among UK IT leaders.
In May, a study from UK cloud provider Civo showed tech leaders across the country were becoming more wary of big US cloud providers, particularly during the disruption caused by tariff announcements.
Nearly two-thirds (60%) of respondents said the UK government should begin taking steps to cut its reliance on US cloud services.
Again, key concerns flagged in the survey centered around the country’s exposure to data security and sovereignty risks, with 61% of respondents revealing that data sovereignty is now a strategic priority for their business.
Repatriation gains traction
Notably, both the Asanti and Civo studies found IT leaders are exploring the prospect of cloud repatriation strategies to counter any data sovereignty and security risks.
Nearly half (45%) of respondents told Civo they are considering repatriating workloads from the public cloud. Meanwhile, Asanti’s survey found 91% of respondents were already in the process of bringing some applications back on-prem or into colocation facilities.
That’s not to say that US concerns are solely responsible for this changing outlook on public cloud, however. Cloud repatriation has been a recurring talking point over the last two years, largely due to rising costs.
Nearly half of respondents (41%) to Asanti’s 2024 research on this topic identified public cloud costs as a key factor behind their decision to begin repatriating workloads.
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