6 August 2025

A survey released by team.blue—Europe’s digital enabler serving over 3.3 million small and medium‑sized business customers across more than 60 brands—reveals that data sovereignty is now a business‑critical imperative for European SMEs. The EU Data Hosting Report, based on a proprietary survey conducted between March and May 2025 of more than 2,000 companies across the UK, Ireland, Belgium, the Netherlands and other markets, draws a clear picture: trust, transparency and compliance are no longer optional—they are decisive.

team.blue: A European Ecosystem Built on SMEs’ Needs

team.blue operates across Austria, Belgium, Bulgaria, Cyprus, Czechia, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, The Netherlands, Portugal, Serbia, Slovakia, Spain, Sweden, Switzerland, Turkey and the UK. With over 3,300 experts supporting domains, hosting, e‑commerce, compliance, lead generation and application solutions, the group’s mission is to simplify digital life for entrepreneurs and business decision‑makers.

The Report: Scope and Methodology

Conducted across five European countries between March and May 2025, the survey included micro‑enterprises, sole traders, mid‑sized SMEs and larger organisations. Notably, over 28 percent of respondents held C‑level positions, and a further 35 percent held director, consultant or senior IT roles. Stephen Ewart, Chief Revenue Officer at team.blue, stresses:

“These are individuals who either make or heavily influence digital infrastructure and data hosting decisions.”

Key Findings: Trust, Uncertainty and Sovereignty at the Forefront

The flagship findings paint a stark picture:

• 57 percent of SMEs are uncertain whether their provider stores data exclusively within EU borders.
• 51 percent report increased stakeholder interest (including clients, boards and regulators) in data residency.
• 72 percent express concern over data stored in the United States; 21 percent are actively considering switching providers.

Ewart notes:

“When over half of businesses are unclear on something as fundamental as where their data is stored, it signals a greater need for transparency, education, and communication… This uncertainty can fuel distrust… concerns aren’t just technical—they’re strategic.”

He adds that geopolitical dynamics—including the US CLOUD Act, which allows US authorities access to data held by US providers regardless of location—are driving unease over reliance on US hyperscalers.

Market Share: How Providers Stack Up

team.blue currently holds data hosting for around 32 percent of SMEs surveyed—far ahead of Google Cloud (13 percent) and Microsoft Azure (13 percent).

Ewart explains this strong position:

“Trust, proximity and purpose‑built services for the European market… our solutions ensure that our customers can operate with confidence—knowing their data is stored and handled in full compliance with EU law.”

Context: Why Data Sovereignty Matters – Globally and in SMEs

Regulatory and Geopolitical Backdrop

Brussels continues to advance a European Data Strategy, complemented by a proposed Cloud and AI Development Act, aiming to triple EU data‑centre capacity by 2035. Through initiatives such as EU Cloud Rulebook, EUCS certification and Data Act provisions to combat vendor lock‑in, the European Commission is laying the groundwork for a truly sovereign digital infrastructure.

At the same time, regulatory authorities are increasing enforcement: Italy’s data protection authority recently fined a US‑based AI company €5 million over failures in transparency, underscoring the risks companies face if they cannot prove compliant hosting.

Market Trends: SMEs in the Vanguard of Digital Sovereignty

Reports show that EU SMEs are increasingly treating cloud hosting decisions as strategic—not merely technical. A TechRadar expert analysis places the shift at a “tipping point”, noting 72 percent of European businesses now prioritise data control, yet over 70 percent still rely on US hyperscalers.

In the UK specifically, 78 percent of organisations cite sovereignty as a key factor in infrastructure choice, with many adopting multi‑cloud or hybrid strategies to gain flexibility, governance and compliance control, according to techradar.com.

Market forecasts reflect this sea change: Europe’s data resiliency market is expected to grow from USD 3.48 billion in 2024 to USD 13.44 billion by 2035, driven by regulatory compliance and cloud adoption among SMEs, according to marketresearchfuture.

What It Means for SMEs: Strategic Imperatives and Best Practices

• Clarify data residency: SMEs must demand transparency from providers—where data is stored, who can access it, and under what laws.
• Choose providers aligned with EU compliance frameworks: Opt for services offering local infrastructure, EU Cloud Certification (EUCS), and clear assurances on governance.
• Leverage integrated digital ecosystems: Simplify operations and improve security by using joined‑up platforms for hosting, compliance, domains, security, and e‑commerce. team.blue emphasises this approach, combining multiple brands under one governance umbrella.
• Consider hybrid or multi‑cloud setups: These strategies offer redundancy, flexibility and reduced dependency—while respecting data sovereignty requirements.

Insights From team.blue Leadership

Stephen Ewart underscores the urgency:

“SMEs no longer see data location as a purely technical choice; it’s a business‑critical decision that directly impacts trust, customer relationships, and long‑term resilience.”

He adds:

“Providers that can’t clearly demonstrate compliance, localisation and control will continue to lose trust, and ultimately market share.”

In alignment, Claudio Corbetta reaffirmed team.blue’s strategy:

“As team.blue and our brands roll out AI‑powered innovations, our focus is unwavering: pair local trust with global innovation so our 3.5 M customers in Europe and beyond can grow with confidence.”

Conclusion: The Path Ahead for European SMEs

This new data makes clear that European SMEs see sovereignty not as an optional compliance checkbox but as a strategic investment in trust, resilience, and customer confidence. As regulatory complexity increases and geopolitical tensions heighten, providers that can offer transparent, compliant, EU‑based solutions will gain the decisive advantage.

Europe is moving rapidly to build infrastructure that supports sovereignty—from regulatory frameworks to sovereign cloud providers such as OVHcloud, Capgemini, and team.blue.

For SMEs across the continent, the message is clear: clarify data residency, align with compliant providers, embrace integrated services, and adopt multi‑cloud or hybrid architectures where beneficial. The sooner businesses act to secure data sovereignty, the better they’ll be positioned to build trust, comply with evolving regulations, and thrive in an increasingly uncertain global environment.