Netherlands Signs Deal with European Cloud Provider to Reduce Reliance on US Tech

The Dutch central government has signed a framework agreement with STACKIT, a cloud platform owned by the German Schwarz Group, the parent company of Lidl and Kaufland. The deal, which took effect immediately, is the first framework agreement of its kind concluded with a European cloud provider and is part of a broader effort to reduce the government's dependence on American technology companies.

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What the agreement does

The agreement sets out the legal conditions under which government organisations can voluntarily use STACKIT's services. It includes clear requirements about where data is stored, specifically within the European Economic Area. The central government also has audit rights, meaning it can verify whether STACKIT is complying with the agreed terms.

The agreement also includes provisions for ending contracts if the provider were to be acquired by a party outside the European Economic Area.

By negotiating the terms centrally, individual government bodies no longer need to conduct their own complex contract negotiations. According to the ministries involved, this prevents fragmentation and ensures that all government organisations, regardless of their size, can benefit from favourable conditions.

No government body is obliged to migrate. The agreement lowers the threshold for those that want to switch, but the decision remains with each organisation.

Why it is happening now

The Dutch government currently relies primarily on services from large American technology companies, including Google, Microsoft and Amazon. Framework agreements have previously been concluded with those companies too. Concern about digital dependence on the United States has been growing since last year.

A particular trigger has been the potential American takeover of Solvinity, the company that manages DigiD, the digital identity system used by millions of Dutch people to access government services. A majority in parliament now wants DigiD management to be removed from Solvinity, with many parties preferring that the company does not fall into American hands at all.

The American CLOUD Act, which allows US authorities to access data managed by American companies even when that data is physically stored in Europe, has also sharpened the debate.

What ministers said

Minister Van Weel of Justice and Security said the agreement marks an important step in reducing dependence on parties outside Europe and strengthening digital resilience. State Secretary Willemijn Aerdts of Digital Economy and Sovereignty wrote that digital autonomy means being able to make choices from a diverse range of providers.

Broader context

The STACKIT deal is not the only initiative in this space. In early April, seven Dutch IT companies including Centric, KPN and Uniserver formed the Open Cloud Alliance, offering to take over critical government systems from American providers. The Dutch central bank DNB also recently signed a deal with Schwarz Digits, the same group that owns STACKIT, to move away from American cloud services.