Study: Europe's defense runs on American servers

NATO's critical infrastructure is subject to ongoing cyberattacks. Only 13 percent of cloud usage in defense is handled by European service providers. Market concentration and legislation in the USA are becoming a means of exerting pressure. Stuttgart, July 6, 2026 Up-to-date data has become a crucial strategic advantage in defense. It is therefore all the more important that this data can be processed and used securely in the cloud. However, 72 percent of cloud usage by defense industry companies relies on US providers such as Microsoft, Amazon, and Google.

This cloud dependency threatens to become a political bargaining chip. The industry has recognized the problem: Nearly half of all defense executives consider the lack of a sovereign cloud to be the biggest bottleneck in operational capacity. These are the findings of the Horváth study "Aerospace & Defense," which surveyed top executives in the aerospace and defense industry. While US providers operate almost three-quarters of European cloud infrastructure, European providers combined account for just 13 percent.

The US government can access cloud data. This is made possible by a US federal law, the CLOUD Act (Clarifying Lawful Overseas Use of Data Act). The law obligates American companies, such as the three major US cloud providers, to hand over data to US authorities upon request, regardless of whether the servers are located in Europe. "Whoever controls the cloud, in a pinch, also controls the outcome of a conflict. But Europe doesn't just need more investment in its own infrastructure; first, the EU member states need a common definition of what a sovereign cloud should achieve," explains the defense expert. Without a shared understanding of digital sovereignty, any investment will remain piecemeal.

AI leads to disruption in defense
There is also a need to catch up in the area of ​​artificial intelligence (AI). 82 percent of the executives surveyed are convinced that AI has become the most disruptive force in the defense sector. They believe its use will change leadership, control, and logistics faster than any new weapons system. However, there is still a long way to go before AI is implemented in operational processes. 95 percent of the companies surveyed have started AI projects, but in many areas they are still in the initial stages. Data security concerns and fragmented data landscapes are hindering scaling. At the same time, the pressure is growing to catch up in terms of AI maturity: By 2030, 90 percent of new military hardware should be connected via networked systems. “AI will only become a military advantage if Europe sovereignly controls the underlying data.

Therefore, the real challenge is not AI itself, but the architecture of a sovereign cloud behind it,” says Ralf Gaydoul. About the study For the Horváth study "Aerospace & Defense," a representative selection of managers from defense companies in Germany and Europe were surveyed. The sample comprises over 60 CxOs, with whom in-depth personal interviews were conducted.

About Horváth
Horváth is an international, independent management consultancy with 1,400 employees at locations in Europe, the USA, and other global markets. As a leading management consultancy for transformation, performance management, and digitalization, we guide companies and public organizations toward sustainable success and long-term, high value creation. Horváth distinguishes itself through well-founded, innovative consulting approaches and solutions – based on our roots and values, shaped by our founder, Professor Péter Horváth. Clients, from the executive board to specialist levels, particularly value our extensive expertise, implementation strength, and collaborative partnership. Horváth has received numerous awards for the high level of satisfaction with the project results achieved .

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