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Object Storage

Backblaze vs. EU Object Storage: A 2025 Sovereignty and Cost Analysis

11.10.2025

11

Minutes
Thomas Demoor
CTO Impossible Cloud
How choosing a sovereign EU cloud eliminates CLOUD Act risks and unpredictable fees inherent in US-based storage models.

For UK and EU businesses, the debate over Backblaze vs. EU object storage is about more than just price per terabyte; it is a strategic decision with profound implications for data sovereignty, regulatory compliance, and budget predictability. While US-based providers may host data within European borders, their legal obligation to US laws like the CLOUD Act creates a direct conflict with GDPR. This analysis moves beyond surface-level features to compare the foundational differences in jurisdiction, cost structure, and regulatory alignment, providing a clear framework for selecting a storage partner that guarantees both performance and EU legal certainty for 2025 and beyond.

Key Takeaways

  • True EU data sovereignty requires a provider that is legally based in the EU to eliminate risks from foreign laws like the US CLOUD Act, as data location alone is insufficient.
  • A predictable cost model with zero egress fees and no API call charges is essential for accurate budgeting and enables predictable margins for MSPs.
  • Full S3 API compatibility combined with an 'Always-Hot' architecture ensures seamless migration, simplifies operations, and strengthens ransomware defenses with immutable backups.

Clarify the Sovereignty Risk of US Providers

Many EU businesses believe storing data in a European data center ensures compliance, but this overlooks a critical detail: provider jurisdiction. A provider headquartered in the US is subject to the US CLOUD Act, which grants US authorities the power to demand access to data regardless of its physical location. This means your data in a Frankfurt or Dublin facility could be accessed without EU oversight, directly challenging GDPR principles.

A truly sovereign EU provider eliminates this risk entirely because it operates under EU law. This jurisdictional alignment is your only 100% guarantee against non-EU data access requests. For businesses in regulated sectors like finance or healthcare, this distinction is fundamental to maintaining compliance and customer trust. The demand for EU data residency is now a primary criterion for over 70% of IT leaders.

This legal reality makes the choice of provider a core part of your risk management strategy.

Achieve Predictable Costs by Eliminating Hidden Fees

The pricing models of many US-based storage providers conceal significant operational expenses. Data egress fees, the cost to move your data out of the cloud, can add up to 30% to a monthly bill, making budget forecasting nearly impossible. Add to this the charges for API calls, which accumulate with every backup, restore, or data management operation.

A predictable-by-design model fundamentally changes this economic equation. Here is how it provides clarity:

  • Zero Egress Fees: You can access or move your data anytime without penalty, which is critical for disaster recovery tests and avoiding vendor lock-in.
  • No API Call Costs: Your applications and backup tools can interact with storage as needed without generating surprise charges.
  • No Minimum Duration Fees: Store data for as long as you need, from days to decades, without financial penalties for short-term archives.

This transparent approach ensures your bill reflects only the storage you use. For MSPs, this translates directly to stable, defensible margins for Backup-as-a-Service offerings. This financial predictability is a key driver for the 9 out of 10 EU IT leaders who demand transparent cloud costs for critical infrastructure.

With a clear cost structure, you can focus on value instead of navigating complex billing.

Standardize on S3 Compatibility for Seamless Migration

Adopting a sovereign EU cloud does not require abandoning years of investment in S3-based tools and workflows. Full S3 API compatibility ensures your existing applications, scripts, and backup software continue to work without code rewrites. This protects past investments and minimizes migration risk to near zero.

An enterprise-ready EU object storage solution supports more than just basic operations. Advanced capabilities should be standard:

  1. Versioning for object history and recovery.
  2. Lifecycle management to automate data transitions.
  3. Object tagging for granular cost allocation and data management.
  4. Event notifications to trigger automated workflows.

This ensures your data management pipelines run without interruption. A platform that offers a true S3 alternative allows you to switch endpoints and credentials, test functionality, and migrate data with minimal operational disruption. This simplicity is a key reason why willingness to switch providers rises with proven performance parity.

This focus on open standards ensures you retain control over your technology stack.

Build Resilient Operations with an Always-Hot Architecture

Many storage providers use complex tiering models that can introduce delays and unexpected costs. An "Always-Hot" object storage model simplifies operations by ensuring all data is immediately accessible without tier-restore delays. This is critical for backup and disaster recovery, where every second of downtime impacts revenue.

This architecture provides several key advantages for resilience. It eliminates fragile lifecycle policies that can lead to API timeouts or restore failures. Immutable Storage with Object Lock provides a robust defense against ransomware, as it makes backup data unchangeable for a defined period. This feature is essential for meeting modern data protection and audit requirements.

An architecture built for consistency delivers predictable latencies, which is vital for hybrid workloads that include millions of small files alongside large archives. This operational stability is why many are rethinking their reliance on complex, tiered systems. Choosing a provider with a clear performance promise is essential for modern IT.

This approach prepares your data infrastructure for any recovery scenario.

Align with Future EU Regulations by Design

The European regulatory landscape is evolving, and your storage choice today impacts future compliance. Two key regulations are shaping the market for 2025 and beyond. The EU Data Act, effective from September 2025, mandates data portability and interoperability to prevent vendor lock-in. A platform with zero egress fees and open standards inherently aligns with this principle.

The NIS-2 Directive imposes stricter cybersecurity duties on critical infrastructure providers, including continuous security processes and supply-chain assurance. Choosing a GDPR-compliant storage provider that bakes these requirements into its core operations is a competitive advantage. This proactive stance on compliance reduces risk and simplifies audits.

Operating exclusively in certified EU data centers with country-level geofencing provides the granular control needed for regulated workloads. This ensures you can meet today's GDPR requirements and adapt to tomorrow's regulatory demands without needing to re-architect your storage strategy.

This forward-looking approach turns regulatory readiness into a business enabler.

Enable Partner Success with a Predictable Channel Model

For MSPs, resellers, and system integrators, profitability depends on predictable margins. A storage model with zero egress or API fees is predictable by design, allowing partners to build and price services with confidence. This removes the risk of client-side activities, like a large data restore, eroding the partner's margin.

A partner-ready platform provides the tools needed to operate efficiently. Key features include:

  • A multi-tenant console with Role-Based Access Control (RBAC) and MFA.
  • Full automation capabilities via API and CLI.
  • Integrated reporting for billing and usage.
  • Fast and simple onboarding processes.

Recent distribution agreements further expand local access for UK and EU partners. The addition of Northamber plc as the first UK distributor, alongside api in Germany, demonstrates growing channel momentum. This ecosystem focus, combined with integrations with leading backup tools like NovaBackup, provides a strong foundation for partner growth. Explore our cost-effective solutions for your clients.

This channel-first approach ensures partners have the technology and business model to succeed.

FAQ

Why is choosing an EU-based cloud provider better for CLOUD Act avoidance?

An EU-based and owned cloud provider operates under EU law and is not subject to US jurisdiction. This means it cannot be compelled by US authorities under the CLOUD Act to turn over customer data, providing a fundamental legal protection that US-based providers cannot offer, even when using EU data centers.


What does 'Always-Hot' storage mean and how does it help with ransomware?

'Always-Hot' storage means all your data is instantly accessible without any delays from moving it out of a 'cold' or 'archive' tier. Combined with Immutable Object Lock, it strengthens ransomware defense by ensuring your backups are always ready for immediate recovery and cannot be altered or deleted by an attacker.


How does a zero egress fee model benefit my business?

A zero egress fee model provides complete cost predictability. You will never receive a surprise bill for accessing your own data, performing a disaster recovery test, or migrating to another provider. This financial control is critical for budgeting and removes the vendor lock-in created by punitive data transfer fees.


Is this type of EU object storage suitable for MSPs?

Absolutely. The predictable cost model with no egress or API fees allows MSPs to build profitable Backup-as-a-Service (BaaS) and archive solutions with stable margins. Features like a multi-tenant console, API-driven automation, and new distribution channels in the UK and Germany make it a partner-ready solution.


How does an EU storage provider align with the upcoming EU Data Act?

The EU Data Act, effective September 2025, is designed to make switching cloud providers easier and prevent vendor lock-in. A provider built on open standards like the S3 API and with a zero egress fee policy is inherently aligned with the spirit and letter of this regulation, ensuring your data remains portable.


What is country-level geofencing?

Country-level geofencing is a feature that allows you to restrict the storage of your data to specific, predefined countries within the EU. This provides an additional layer of control to meet strict data residency requirements for industries like financial services or the public sector.


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