Magazine
European Cloud
German Cloud

How to Identify the Best Cloud Storage in Europe for 2025

21.08.2025

10

Minutes
Christian Kaul
Founder & COO Impossible Cloud
A guide for enterprise IT and MSPs on navigating sovereignty, compliance, and cost-efficiency in the EU cloud market.

For European enterprises and MSPs, the conversation around cloud storage has fundamentally shifted. While performance remains important, the primary criteria for selecting the best cloud storage in Europe now center on digital sovereignty, regulatory compliance, and predictable economics. With the US CLOUD Act posing risks to data privacy and regulations like the EU Data Act and NIS-2 reshaping the market, choosing a provider is a strategic decision with long-term consequences. This guide outlines a clear, enterprise-ready framework for evaluating European cloud storage options that deliver control and value.

Key Takeaways

  • True digital sovereignty requires a 100% EU-owned and operated cloud provider to eliminate risks from foreign laws like the US CLOUD Act.
  • The 2025 EU Data Act will ban cloud egress fees for switching providers, making a zero-egress pricing model a regulatory and financial imperative.
  • Enterprise-ready features like full S3 compatibility and Immutable Object Lock provide a practical path to ransomware resilience and simplified migration without vendor lock-in.

Establish True Digital Sovereignty to Mitigate Risk

Data residency, the physical location of data, is not the same as data sovereignty, which dictates legal control. A provider subject to non-EU laws like the US CLOUD Act can be compelled to grant access to your data, even if it is stored in a Frankfurt data center. The only certain method to ensure EU data protection standards are upheld is to use a strictly EU-controlled provider, eliminating this jurisdictional risk entirely.

For over 50% of IT leaders, EU data residency is a primary selection criterion for cloud services. This demand is driven by the need for legal certainty under GDPR. Choosing a sovereign-by-design provider ensures your data is governed exclusively by EU law, a critical step for any organization handling sensitive information. This approach moves beyond simple compliance to build a foundation of trust and resilience.

Align with 2025 EU Regulations for a Competitive Advantage

The European regulatory landscape is strengthening data control for customers with two key directives. The NIS-2 Directive, expected to be implemented in Germany by early 2025, mandates robust supply-chain security and risk management. Using immutable backups provides verifiable proof of data integrity, a technical measure that directly addresses the directive's call for enhanced cyber resilience. This preparation is no longer optional for thousands of companies.

Additionally, the EU Data Act, fully applicable from September 2025, is designed to eliminate vendor lock-in. A key provision of the Act is the phasing out of all data egress fees for the purpose of switching providers, which will be completely prohibited after January 2027. A provider already aligned with this model offers a distinct advantage, ensuring your data portability is guaranteed from day one. This positions your organization ahead of the regulatory curve.

Eliminate Hidden Fees to Achieve Predictable Cloud Economics

Unpredictable costs are a primary pain point for IT leaders, with egress fees being a major contributor to vendor lock-in. These data transfer charges can inflate total cloud spending by 20-40%, turning routine restore operations into significant, unbudgeted expenses. A Forrester study found that companies underestimating egress paid up to 20% more on total cloud bills than those who modeled it upfront. This pricing model creates a financial barrier to switching providers.

A transparent economic model is essential for finding the best cloud storage in Europe. You should seek a solution with a clear pricing structure that includes:

  • Zero egress fees for data retrieval or migration.
  • No charges for API calls, which supports automation.
  • No minimum storage duration requirements.

This approach ensures predictable margins for MSPs and allows enterprises to forecast budgets with 100% accuracy. For a detailed breakdown, see our cloud storage cost comparison.

Demand Enterprise-Grade Architecture for Performance and Resilience

Full S3 compatibility is the de-facto standard for modern object storage and a non-negotiable enterprise requirement. It ensures that your existing backup tools, applications, and scripts continue to work without modification, protecting past investments and reducing migration risk by up to 50%. This compatibility allows for seamless integration with leading backup ISVs like NovaBackup, simplifying the path to a compliant EU-based S3 alternative.

Beyond the API, the storage architecture must be built for consistency and availability. An "Always-Hot" object storage model, where all data is immediately accessible, eliminates the delays and hidden fees associated with complex tiering. This design avoids the operational fragility of tiering policies, which can fail during urgent restores and drive up costs. An always-hot system with multi-AZ replication guarantees predictable performance for any workload.

Implement Immutable Storage for Proactive Ransomware Defense

Ransomware remains a top threat, making immutable storage a critical component of any modern data protection strategy. Using S3 Object Lock, you can make backups unchangeable for a defined period, creating a secure copy that even administrators cannot alter or delete. This provides a guaranteed clean recovery point in the event of an attack, directly supporting business continuity with near-100% reliability.

This security posture must be complemented by robust identity and access management (IAM). A compliant solution offers the following controls:

  1. Role-Based Access Control (RBAC) to enforce the principle of least privilege.
  2. Multi-Factor Authentication (MFA) to prevent unauthorized account access.
  3. Support for external IdPs via SAML/OIDC for integration with existing corporate directories.
  4. Country-level geofencing to restrict data storage to specific EU nations for regulated workloads.

These features help build a security posture that meets the stringent requirements of both GDPR and the upcoming NIS-2 directive, making EU-only S3 storage a strategic choice.

Empower Channel Partners with a Predictable and Scalable Model

For MSPs, resellers, and system integrators, predictable margins are the foundation of a profitable service offering. A cloud storage model with zero egress or API fees is predictable by design, allowing partners to build BaaS and archiving services with defensible, stable revenue streams. This financial clarity is a significant differentiator in a market where 56% of IT professionals find egress fees excessive.

A partner-ready platform must also provide the tools for efficient management and growth. Key features include a multi-tenant console with robust RBAC and MFA, automation capabilities via a full-featured API and CLI, and clear reporting. With fast onboarding and growing distribution channels, including api in Germany and Northamber plc in the UK, partners can quickly scale their operations across Europe. This ecosystem provides the fastest path to market for sovereign cloud services.

Your Next Steps Toward a Sovereign Cloud Strategy

Making the switch to a sovereign cloud provider is a practical step toward regaining control over your data and your budget. An enterprise-ready platform built on the principles of data freedom, transparent pricing, and robust security offers a clear path away from vendor lock-in. By prioritizing a European provider, you align your infrastructure with the future of EU regulation and build a resilient foundation for your most critical data.

Ready to see how a sovereign-by-design approach can transform your cloud operations? Talk to an expert or start a free trial to experience the benefits of a predictable, compliant, and enterprise-ready cloud storage solution built for Europe. This is your opportunity to implement the best cloud storage in Europe for your organization's needs.

FAQ

What is the difference between data residency and data sovereignty?

Data residency refers to the physical geographic location where data is stored. Data sovereignty is a legal concept that means data is subject to the laws of the country where it is located. Storing data in an EU data center (residency) with a non-EU provider does not guarantee sovereignty, as foreign laws may still apply.


How does S3 compatibility help with cloud migration?

Full S3 compatibility means the storage service uses the same API as the industry standard. This allows you to use your existing applications, backup software, and management tools without needing to rewrite code, which significantly simplifies and de-risks the migration process.


Is cloud storage in Europe automatically GDPR compliant?

No. While storing data in Europe is a key part of GDPR compliance, it's not the only factor. The provider must also offer robust security, encryption, and access controls, and crucially, must not be subject to foreign laws that could conflict with GDPR's privacy principles.


What advantages does a no-egress-fee model offer MSPs?

For Managed Service Providers (MSPs), a model with no egress or API fees allows for the creation of backup and archiving services with predictable, stable costs. This leads to defensible margins and the ability to offer customers transparent pricing without risking surprise charges.


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