According to TheRegister.com, IONOS and German IT service provider Dataport have partnered to create dPhoenixSuite, a fully cloud-based workplace solution hosted exclusively in German datacenters under European jurisdiction. The platform serves six German federal states and handles tens of thousands of concurrent users while maintaining complete data control and transparency. A February 2025 Bitkom study found that 86% of companies prefer European AI infrastructure, driven by GDPR requirements and concerns about third-country provider risks. IONOS operates 18 datacenters across the EU and claims pricing up to 50% cheaper than US hyperscalers while complying with EU AI Act and NIS2 Directive regulations.
Sponsored content — provided for informational and promotional purposes.
When Trust Isn’t Optional
Here’s the thing about government services moving to the cloud: citizens don’t get to choose their provider. When your local registry office or health department goes digital, you’re stuck with whatever infrastructure they picked. And if that infrastructure answers to foreign laws or operates in legal gray areas, well, that’s problematic.
The push for digital sovereignty isn’t just bureaucratic box-ticking. We’re talking about citizen data, tax information, health records – the stuff that really matters. IONOS makes a compelling case that European infrastructure controlled by European companies under European law is the only way to guarantee actual sovereignty. But is it really that simple?
The Regulatory Pressure Cooker
Look, the regulatory environment is getting brutal for US cloud providers in Europe. Between GDPR, the EU AI Act, and NIS2, compliance is becoming a nightmare. IONOS claims many US platforms can’t legally meet these standards, which creates a massive opportunity for European providers.
That 86% figure from Bitkom is telling. Companies aren’t just worried about fines – they’re concerned about geopolitical risks and not understanding foreign legal systems. When your entire business could be disrupted because of some legal change in another country, sovereignty starts looking pretty attractive.
But Is It Really That Clear Cut?
Now, I’ve got some questions. IONOS talks about being “up to 50% cheaper” than US hyperscalers, but cheaper than what exactly? The baseline pricing? Typical enterprise contracts? Those big cloud providers are famous for their complex discount structures and negotiated deals.
And while European control sounds great in theory, does it actually translate to better security? Having your data in Germany doesn’t automatically make it safer – it just means different laws apply. The technical implementation matters just as much as the legal jurisdiction.
The dPhoenixSuite example is interesting because it’s actually being used by real government agencies. But scaling from six German states to broader European adoption? That’s a different challenge entirely.
Why This Affects More Than Governments
Basically, what’s happening in the public sector is coming for regulated industries next. Banking, healthcare, energy – they’re all facing the same pressures. If you handle sensitive data or operate critical infrastructure, sovereignty is becoming part of the cost of doing business.
IONOS is positioning itself as the go-to for this shift, and they’re running webinars to educate potential customers. They’ve also got security API services that play into this sovereignty narrative.
So is this the beginning of a major shift away from US cloud dominance in Europe? Maybe. But the real test will be whether European providers can actually deliver the innovation and scale to match their sovereignty promises. Because trust is great, but performance matters too.
