According to TheRegister.com, the partnership between IONOS and Dataport has created the dPhoenixSuite, a fully cloud-based workplace solution for German public administration hosted exclusively on IONOS Cloud infrastructure. The solution runs across 18 IONOS datacenters in the EU and serves tens of thousands of concurrent users while guaranteeing complete data control under European jurisdiction. A Bitkom study from February 2025 found that 86% of companies prefer AI infrastructure based in Europe, driven by GDPR requirements and concerns about third-country provider risks. IONOS positions itself as offering infrastructure up to 50% cheaper than US hyperscalers while maintaining full European control over data, processes, and technology standards. The dPhoenixSuite uses modular open-source architecture and is entirely transparent and auditable from user interface to code level.
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When sovereignty actually matters
Here’s the thing about digital sovereignty – it’s not just about where your servers are located. It’s about who controls the technology stack, who can access your data, and which legal framework applies when things go wrong. For public services handling everything from citizen records to healthcare data, this isn’t optional. It’s fundamental to maintaining public trust.
And that’s where the IONOS-Dataport partnership gets interesting. They’re not just talking about European infrastructure – they’re building solutions where every layer, from the user interface down to the code itself, is transparent and auditable. That’s a huge deal when you’re talking about government systems that need to withstand both technical scrutiny and public accountability.
The regulatory pressure cooker
Look, we’re seeing a perfect storm of regulations that make sovereign cloud almost inevitable for European organizations. The EU AI Act, NIS2 Directive, and evolving data residency rules are creating compliance requirements that many US providers simply can’t meet. Basically, it’s becoming legally risky to use non-European infrastructure for sensitive applications.
That 86% figure from the Bitkom study tells you everything. Companies aren’t just thinking about GDPR anymore – they’re worried about geopolitical risks, unpredictable legal exposure, and the simple reality that their data might not be as protected as they thought. When nearly nine out of ten businesses prefer European AI infrastructure, you know the market is shifting fundamentally.
Why this matters for everyone
So what happens in the public sector today often becomes standard for regulated industries tomorrow. Think healthcare, finance, utilities – any sector where data protection and operational reliability are non-negotiable. The transparency and control requirements that Dataport demanded for public administration are exactly what these industries will need.
And here’s where it gets really interesting: IONOS claims their pricing is up to 50% cheaper than US hyperscalers. If that holds up across more use cases, we could see a massive shift away from the big American cloud providers for European workloads. Price was always the sticking point for sovereign cloud – if that barrier disappears, everything changes.
The conversation about cloud data sovereignty is clearly heating up, and organizations are realizing that security isn’t just about technical controls – it’s about legal jurisdiction and operational transparency. As more businesses look to implement these principles, tools like secure API platforms will become essential components of sovereign architecture.
Where this is all heading
I think we’re witnessing the early stages of a fundamental rethinking of cloud strategy in Europe. It’s not just about finding cheaper alternatives to AWS or Azure – it’s about building infrastructure that aligns with European values, legal frameworks, and security expectations.
The public sector led the way with projects like dPhoenixSuite, but the private sector is quickly catching up. As more regulations kick in and geopolitical tensions continue, the demand for truly sovereign cloud will only grow. The question isn’t whether European organizations will move in this direction – it’s how quickly they can make the transition without disrupting existing operations.
Basically, trust is becoming the new currency in digital transformation. And for European organizations, that trust increasingly depends on keeping their digital infrastructure under European control.
