European SMEs Prioritise Data Sovereignty as Trust in Cloud Providers Shifts, Reveals team.blue Report

A new report by team.blue reveals growing concern among European SMEs about data sovereignty and storage locations, with customers and company directors driving the demand for change. The study highlights a clear shift in how businesses perceive trust, compliance, and control in cloud hosting. 

A new report from team.blue, a major digital enabler for SMEs across Europe, finds that small and medium-sized enterprises are increasingly prioritising data sovereignty amid mounting trust concerns about where and how their data is hosted. The report, Data Hosting In Europe: Insights & Shift, gathers perspectives from SMEs across Europe and sheds light on the evolving dynamics of cloud data storage, trust, and digital operations.

As digitalisation deepens, the location of data storage is emerging as a pressing business concern rather than a purely technical decision. The report shows that more than half (57%) of SMEs do not know whether their cloud provider guarantees data storage within EU borders. At the same time, 51% report that stakeholders – especially customers and company directors – are showing greater interest or concern about data storage location.

These insights reflect a wider transformation in the expectations SMEs place on digital service providers, with increasing emphasis on compliance, control, and transparency. The findings come at a time when regulatory frameworks such as GDPR and shifts in international relations are compelling businesses to re-evaluate their digital infrastructure.

US-based data storage raises alarm across european SMEs

According to the survey, 72% of SMEs express specific concerns about having their data stored in the United States. The source of this unease ranges from economic uncertainty to shifting geopolitical dynamics. Notably, 21% of SMEs are actively considering switching to a different provider due to these concerns.

While some firms are taking proactive steps, a knowledge gap remains. Approximately 13% of SMEs still manage their own infrastructure, while 6% are unaware of their current data storage arrangements or have no formal solution in place. This highlights an urgent need for increased awareness and guidance on secure and sovereign data practices.

team.blue emerges as trusted digital partner amidst changing priorities

The report features data from a wide range of SMEs, including a significant number of team.blue’s customers. Among those surveyed, 32.1% currently use team.blue for their data hosting needs, followed by Google Cloud (13.2%) and Microsoft Azure (13%).

Kwaku Yeboah-Antwi, Chief AI and Data Officer at team.blue, comments:

“The data tells a clear story: European businesses – and their customers – are increasingly concerned about where their data resides. This isn’t just a technical issue anymore; it’s a matter of trust, and long-term resilience. What stands out most is that customers are the driving force behind this sentiment, placing pressure on businesses to act responsibly, particularly in light of geopolitical and economic dynamics.

But there is a path forward. By strengthening digital sovereignty, European businesses can achieve both greater security and a competitive edge in today’s complex data landscape.”

Digital ecosystems gain preference over fragmented tools

The report also indicates a growing preference for integrated digital ecosystems. SMEs are moving away from using disjointed services and instead seeking platforms where core digital tools – from hosting and domains to productivity software and security – work seamlessly together.

Claudio Corbetta, CEO of team.blue, states: 

“European businesses are placing growing importance on where their data lives – and who they trust with it. It’s no longer just about performance or price; it's about control, compliance and confidence.

We see huge value in giving businesses a digital home where all their core services work together seamlessly and believe that Europe’s digital future will be built on ecosystems, like ours, as we support businesses to grow without compromise.”

team.blue positions itself as a leader in providing this kind of unified digital home for SMEs. Its tech stack offers businesses an integrated range of services, covering everything from e-commerce infrastructure to compliance solutions, supported by over 3,500 experts across Europe.

About team.blue

team.blue operates in 22 countries across Europe, including Austria, Belgium, Bulgaria, Cyprus, Czechia, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Portugal, Serbia, Slovakia, Spain, Sweden, Switzerland, Turkey and the United Kingdom. The group comprises 60+ established digital brands serving over 3.5 million SME customers.

With solutions ranging from web hosting and domains to online compliance and application tools, team.blue aims to simplify business operations and empower entrepreneurs to focus on growth. Its long-term vision is to shape technology to make business simpler for customers across Europe.