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Cost Optimization
Wasabi Alternative

EU vs. US S3 Storage: A 2025 Guide to Data Sovereignty and Cost Control

30.09.2025

11

Minutes
Christian Kaul
Founder & COO Impossible Cloud
For UK businesses, the choice of S3-compatible storage is now a strategic decision. Navigating the complexities of data sovereignty, regulatory compliance, and unpredictable costs is critical for maintaining control and competitive advantage.

In 2025, the discussion around Wasabi vs EU S3 storage has evolved into a critical strategic assessment for UK and European enterprises. With over 45% of EU businesses now using cloud services, the choice of provider has profound implications for data sovereignty, GDPR compliance, and budget predictability. Storing data in an EU data centre owned by a non-EU company does not guarantee protection from foreign laws like the US CLOUD Act, which can compel access to your data regardless of its physical location. This guide examines the key factors IT leaders must consider, from regulatory exposure and hidden egress fees to the architectural advantages of a truly sovereign cloud built for the EU's legal framework.

Key Takeaways

  • True data sovereignty requires an EU-domiciled provider to avoid risks from foreign laws like the US CLOUD Act, as simple data residency in an EU data centre is insufficient.
  • Predictable cloud storage costs are achievable by selecting a provider with a transparent model that includes zero egress fees and no API call charges, eliminating up to 48% of hidden costs.
  • Upcoming EU regulations like the Data Act and NIS-2 mandate data portability and higher security standards, making alignment with an EU-native provider a strategic compliance advantage.

Define Your Data Sovereignty Strategy Beyond Simple Residency

True data sovereignty is not just about where your data is stored; it's about who has legal control over it. Many US-based S3 storage providers operate data centres within Europe, but this only satisfies data residency, not sovereignty. Under the US CLOUD Act of 2018, American authorities can legally compel US-headquartered companies to provide access to data they control, no matter where it resides globally. This creates a direct conflict with GDPR's mandate to protect EU data from foreign access.

For UK businesses, this means that even with data stored in a Frankfurt or Dublin facility, you remain subject to US jurisdiction. A truly sovereign approach requires a provider that is not only located but also legally domiciled within the EU, ensuring your data is governed exclusively by European law. This distinction is the primary factor when evaluating any EU S3 storage solution against its US counterparts. Choosing an EU-native provider eliminates this legal ambiguity entirely.

Achieve Predictable Costs by Eliminating Hidden Fees

Unpredictable costs are a major pain point for the 77% of large EU enterprises using cloud services. Many S3-compatible storage providers use complex pricing models that include significant charges beyond the base storage rate. These often include egress fees, which can be as high as $0.09 per GB for data transferred out of the cloud, and API call charges for every single data operation. In 2022, these extra fees accounted for nearly 48% of total cloud storage bills for many organizations.

A transparent economic model is a key differentiator in the Wasabi vs EU S3 storage debate. An EU-centric provider built on a predictable cost model offers a significant advantage. By choosing a service with zero egress fees, no API call costs, and no minimum storage durations, you can forecast your expenses with 100% accuracy. This approach transforms your storage from a variable operational expenditure into a predictable, stable investment, which is critical for MSPs needing to protect their margins and for enterprises managing large-scale backup and archive workloads. This financial clarity is a core benefit of moving to a predictable cloud model.

Align with Europe's 2025 Regulatory Landscape

The European regulatory framework is rapidly advancing to enforce digital sovereignty. As of September 2025, two key regulations fundamentally change the requirements for cloud storage providers:

  • The EU Data Act: This regulation is designed to eliminate vendor lock-in by making data portability a mandatory right. It mandates a phased removal of all data egress fees, with a complete ban coming into effect by January 2027, ensuring you can move your data freely.
  • The NIS-2 Directive: Effective from October 2024, NIS-2 imposes stringent cybersecurity measures for critical sectors, including cloud service providers. It requires robust risk management, supply chain security verification, and strict incident reporting timelines, placing a heavy compliance burden on providers.

Choosing an EU S3 storage provider that is sovereign by design ensures these regulations are not an afterthought but are built into the core of the service. This proactive compliance with EU data laws provides legal certainty and reduces your organization's risk profile significantly. This regulatory alignment is a crucial advantage over providers operating under different legal jurisdictions.

Demand Enterprise-Grade S3 Compatibility and Performance

Full S3 API compatibility is essential for protecting your investments in existing tools and workflows. True compatibility goes beyond basic object operations; it includes advanced features like versioning, lifecycle management, and immutable storage via Object Lock. This ensures your backup software, archival scripts, and applications continue to work without any code rewrites, minimizing migration friction. For example, out-of-the-box integrations with leading backup tools like NovaBackup are a testament to deep compatibility.

Furthermore, an enterprise-ready architecture must deliver consistent performance without complex tiering. Many providers offer different storage tiers (hot, cool, archive) that introduce delays and unexpected fees during data retrieval. An "Always-Hot" storage model, where all data is immediately accessible, eliminates this complexity. This design guarantees predictable latencies and ensures that when you need to perform a restore-especially during a ransomware attack-your data is available in milliseconds, not hours. This focus on performance and simplicity is a key consideration when comparing cloud storage performance.

Secure Your Data with Immutable Backups and EU-Controlled Security

Ransomware remains a top threat, making immutable backups a non-negotiable feature for any S3 storage solution. S3 Object Lock provides write-once-read-many (WORM) protection, making it impossible to alter or delete critical backup files for a specified period. This capability is your last line of defense, ensuring that even if an attacker gains access to your environment, your backup data remains secure and recoverable. A 3-2-1 backup strategy becomes significantly more resilient with an off-site, immutable copy.

Security extends to identity, access, and encryption under EU control. Look for these critical security features in a provider:

  1. Granular IAM: Role-based access control (RBAC) and multi-factor authentication (MFA) to enforce least-privilege access.
  2. End-to-End Encryption: Multi-layer encryption for data in transit and at rest, with keys managed within the EU.
  3. Geofencing: The ability to restrict data storage and access to specific EU countries to meet stringent compliance needs.
  4. SAML/OIDC Support: Integration with external identity providers for streamlined and secure user management.

These features, governed by EU law, provide a robust security posture that is essential for protecting sensitive enterprise data and meeting your data protection obligations.

Empower Your Channel Partners with a Predictable and Sovereign Platform

For Managed Service Providers (MSPs) and resellers, the choice of a cloud storage partner directly impacts profitability and client trust. A platform that is predictable by design-with zero egress or API fees-allows MSPs to build Backup-as-a-Service (BaaS) and Archiving-as-a-Service offerings with stable, defensible margins. This predictability removes the risk of unexpected costs eating into profits, a common issue with hyperscale providers.

A partner-ready platform must also provide the tools needed for efficient management and scale. This includes a multi-tenant console with robust RBAC and MFA, automation capabilities via a full-featured API and CLI, and clear reporting. With the expansion of local access through distributors like api in Germany and Northamber plc in the UK, the ecosystem for EU-sovereign S3 storage is stronger than ever. This allows partners to deliver compliant, cost-effective solutions that directly address their clients' growing demands for data sovereignty and control. Now is the time to talk to an expert about building your sovereign cloud offering.

FAQ

Why is S3 compatibility important for my business?

S3 compatibility is the de-facto industry standard for object storage. It ensures that your existing applications, backup software (like Veeam or NovaBackup), and development tools can connect to your storage without needing to be rewritten. This protects your technology investments and makes migration to a new provider seamless.


What is immutable storage and why do I need it?

Immutable storage, often enabled by S3 Object Lock, makes data unchangeable and undeletable for a specified period. It is a critical defense against ransomware, as it ensures that even if an attacker compromises your systems, your backup data cannot be encrypted or wiped, guaranteeing a clean copy for recovery.


How can I avoid unpredictable cloud storage bills?

To avoid unpredictable bills, choose a storage provider with a transparent pricing model. Specifically, look for a provider that offers zero egress fees, no charges for API requests (GET, PUT, LIST operations), and no minimum storage duration fees. This ensures your bill is based solely on the amount of data you store.


Is data stored in the UK with a US provider subject to the CLOUD Act?

Yes. The US CLOUD Act's reach is based on the headquarters of the service provider, not the physical location of the data. If your cloud storage provider is a US-based company, any data you store with them, including in UK data centers, can be subject to access requests from US law enforcement.


What does 'Always-Hot' storage mean?

An 'Always-Hot' storage model means all your data is stored in a single, high-performance tier and is always immediately accessible. This simplifies operations and eliminates the delays and retrieval fees associated with tiered storage systems (hot, cool, archive), ensuring fast and predictable performance for all your data, all the time.


How does a sovereign EU cloud provider help with NIS-2 compliance?

A sovereign EU cloud provider helps with NIS-2 compliance by building its security operations and supply chain management entirely within the EU's legal framework. This ensures that all processes, from risk assessments to incident reporting, are aligned with the directive's strict requirements, reducing the compliance burden on your organization.


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