French Cloud Company Challenges US Tech Giants with Italian Expansion

Scaleway, a French-owned cloud computing company, announced plans to establish operations in Milan as part of its strategy to compete with American tech giants in Europe. The move comes as European officials push for reduced dependence on US-based cloud providers like Amazon, Microsoft, and Google.

A French cloud computing firm is taking on American technology powerhouses by launching new operations in Italy, marking another step in Europe’s push to develop homegrown alternatives to US-dominated services.

Scaleway, which operates under France’s Iliad telecommunications company, announced Thursday its decision to establish a cloud computing region in Milan. The company currently runs similar operations in France, Poland, and the Netherlands.

The expansion comes as European leaders express growing concern about the continent’s heavy reliance on American technology companies. Research from the European Parliament shows that Amazon Web Services, Microsoft Azure, and Google Cloud maintain control over approximately 70% of the European Union’s cloud computing market.

According to CEO Damien Lucas, the situation demands action. “Europe cannot rely entirely on foreign hyperscalers to power its digital economy,” Lucas stated.

The company targets businesses looking for European-based cloud services that meet local regulatory requirements. Scaleway has additional plans to establish operations in Sweden and Germany, though specific locations remain undetermined.

Milan’s selection reflects the city’s strong technological infrastructure and its position as a major business center, making it attractive for data centers that support artificial intelligence applications requiring substantial computing power.

Despite offering services comparable to larger competitors, Scaleway operates at a much smaller scale. Bridging this gap will require significant financial investment, with parent company Iliad announcing last year its commitment to spend 3 billion euros ($3.45 billion) on artificial intelligence infrastructure development.

The European cloud computing landscape currently lacks major domestic companies capable of competing with American hyperscalers, a situation that has intensified calls for technological independence amid various international tensions and regulatory challenges.