German Companies Rely on Cloud Services

A recent survey by the digital association Bitkom reveals that 91 percent of German companies have a preference for domestic cloud services. Despite this clear inclination, 71 percent of firms actually utilize offerings from US hyperscalers. This discrepancy highlights the challenges facing the German economy in the realm of cloud computing. The Bitkom report, published in June 2026, analyzes cloud usage in Germany and notes that many companies have concerns regarding data protection and data security. These worries are particularly pronounced, as most US providers do not adhere to the strict German data protection regulations.

Nevertheless, many companies opt for US solutions due to the extensive offerings and scalability of these services. The survey also indicates that 62 percent of companies report feeling dependent on US cloud services. This dependency could jeopardize the long-term innovative capacity of the German economy, as companies may not be able to fully control or protect their data. Another finding of the report is that 58 percent of respondents state they lack the necessary resources to develop their own cloud solutions. This leads many companies to rely on existing offerings from US providers, even though they would prefer a local solution.

The study also emphasizes that 45 percent of companies indicate they are not sufficiently informed about the benefits and possibilities of cloud services. This could be another reason why many firms choose offerings from US providers, who often leverage extensive marketing resources to promote their products. The dependence on US cloud services also has political dimensions. In recent years, the federal government has launched initiatives to promote the development and use of domestic cloud solutions. These initiatives aim to strengthen Germany's digital sovereignty and reduce dependence on foreign providers.

An example of such initiatives is the promotion of cloud regions in Germany, which are intended to enable companies to store and process their data locally. These cloud regions are designed to help companies meet the requirements of the General Data Protection Regulation (GDPR) while also benefiting from cloud computing. The survey also shows that 73 percent of companies would be willing to invest in local cloud solutions if they offer comparable services to those of US providers. This could serve as an incentive for German providers to enhance their offerings and become more competitive.

The findings of the Bitkom report underscore the necessity for German companies to engage more deeply with the opportunities and challenges of cloud services. Dependence on US providers could ultimately undermine the competitiveness of the German economy. The Bitkom report was published on June 15, 2026, and is based on a survey of 1,000 companies in Germany.