German companies seek digital sovereignty despite US provider reliance

Recent studies from Plusserver and the Ifo Institute highlight a growing tension regarding digital sovereignty among German companies. A Plusserver study indicates that many enterprises are increasingly prioritizing data control and are willing to accept higher costs and greater complexity to reduce dependence on major hyperscalers. Approximately 71.1 percent of respondents view digital sovereignty as very important or business-critical, citing IT security, cybersecurity, and control over their own data as primary drivers.

However, despite this perceived need, an Ifo Institute survey reveals that many companies remain hesitant to act. While nearly 88 percent of German businesses use digital products and services from US providers, and 31 percent consider this dependence to be high, a significant portion of those who recognize the risk are not taking countermeasures. About one in five companies find the dependency problematic but plan no action, often due to the additional costs of risk prevention and uncertainty regarding whether customers or suppliers will support such investments in digital independence. The service sector reports the highest level of dependence on US providers at 39 percent.