AWS, Google Cloud, and Azure dominate global cloud infrastructure — but all three are US companies subject to the CLOUD Act. That means US authorities can compel them to hand over data stored on their European servers, regardless of which region you choose. For EU businesses handling personal data under GDPR, this creates a compliance gap that simply choosing an EU region doesn't fully close.
The alternative: European cloud providers that are legally headquartered within the EU or Europe and do not have a US parent company. That removes the most direct route for US legal demands, but it does not settle everything: check each provider's ownership and which regions your data is actually stored in.
Why EU-owned cloud infrastructure matters for GDPR
Under GDPR, using a US cloud provider (even their EU region) involves a cross-border data transfer because the company itself is subject to US jurisdiction. Schrems II (2020) and subsequent EDPB guidance made clear that Standard Contractual Clauses alone are not always sufficient when US surveillance law applies.
Choosing a European provider and an EU-only region removes the most direct source of this issue:
- No US parent company (verify per provider)
- DPA under EU law, straightforward enforcement
- Data stays under EU jurisdiction when you select EU regions explicitly
Top EU cloud hosting and infrastructure providers
Hetzner — best price-to-performance in Europe
Hetzner is a German cloud and dedicated server provider founded in 1997. It consistently offers the best price-to-performance ratio in the EU cloud market.
What Hetzner offers:
- Cloud VPS — starting from ~€3.79/month (CX22: 2 vCPU, 4 GB RAM, 40 GB SSD)
- Dedicated servers — bare metal from ~€39/month
- Object Storage — S3-compatible, priced at €0.0059/GB/month
- Load balancers, firewalls, private networks, snapshots
Data centres: Nuremberg, Falkenstein (Germany), Helsinki (Finland). Hetzner also operates locations outside the EU, including in the USA, so select an EU location explicitly.
Hetzner is GDPR-compliant, ISO 27001 certified, and signs a standard DPA. For teams migrating from AWS EC2 + S3, Hetzner's Cloud + Object Storage is a near drop-in replacement at roughly one-third the cost.
Best for: startups, indie developers, and SMEs looking for affordable, reliable EU hosting.
Scaleway — the developer-friendly French cloud
Scaleway is a French cloud provider. It offers a full IaaS/PaaS stack with a strong developer experience.
What Scaleway offers:
- Compute instances (from €0.01/hour)
- Kubernetes (Kapsule) — managed k8s in the EU
- Serverless Functions and Containers
- Object Storage (S3-compatible)
- Managed databases (PostgreSQL, MySQL)
- Bare metal servers in Paris, Amsterdam, Warsaw
Scaleway is a member of the GAIA-X initiative and is particularly strong for teams building cloud-native applications.
Best for: teams wanting AWS-like breadth from a European provider with more transparent pricing.
OVHcloud — Europe's largest cloud provider
OVHcloud is headquartered in Roubaix, France, and is the largest cloud provider in Europe by revenue. It operates its own data centres across several continents, so the region matters: pick an EU region for each product.
What OVHcloud offers:
- Public Cloud (OpenStack-based IaaS)
- Bare metal dedicated servers
- Managed Kubernetes
- Object Storage
- VPS from €3.99/month
OVHcloud's pricing is competitive and it offers a wide geographic distribution, including regions outside the EU. Their Sovereign Cloud offering is specifically designed for public sector and regulated industries.
Best for: enterprises and public sector organisations that need a European provider with broad geographic coverage and compliance certifications.
Contabo — highest specs per euro
Contabo is a Munich-based provider known for offering exceptionally high-spec servers at budget prices.
What Contabo offers:
- VPS starting from ~€4/month (4 vCPU, 8 GB RAM, 100 GB SSD — significantly more than competitors at this price)
- Dedicated servers
- Object Storage (S3-compatible)
- Data centres in Germany and several other regions, some outside the EU (check the location when you order)
Contabo is not as polished as Hetzner or Scaleway in terms of developer tooling, but the raw compute value is unmatched for price-sensitive workloads.
Best for: compute-heavy workloads (ML training, video processing, databases) where raw specs matter more than cloud-native features.
IONOS — German provider with broad product range
IONOS is a German hosting provider. It is one of the largest web hosting providers in Europe and offers cloud, VPS, and managed hosting.
What IONOS offers:
- Cloud servers (pay-per-minute billing)
- Dedicated servers
- Managed Kubernetes
- Object Storage
- Domains and managed WordPress hosting
IONOS has a broad product range and is particularly strong for SMEs that want managed services alongside infrastructure.
Infomaniak — Swiss provider with strong privacy focus
Infomaniak is a Geneva-based provider that runs entirely on renewable energy and has a strong privacy focus. While Switzerland is not in the EU, it has an adequacy decision under GDPR, making data transfers straightforward.
What Infomaniak offers:
- Cloud VPS and dedicated servers
- Swiss Data Centre (renewable energy)
- Email hosting, collaboration tools
- SwissTransfer for large file sharing
Best for: teams that prioritise privacy and sustainability alongside EU-equivalent data protection.
Comparing EU cloud providers
| Provider | Country | Starting price | Object Storage | Managed k8s | Bare metal |
|---|---|---|---|---|---|
| Hetzner | Germany | ~€3.79/mo | Yes | No | Yes |
| Scaleway | France | ~€0.01/hr | Yes | Yes | Yes |
| OVHcloud | France | €3.99/mo | Yes | Yes | Yes |
| Contabo | Germany | ~€4/mo | Yes | No | Yes |
| IONOS | Germany | ~€1/mo | Yes | Yes | Yes |
| Infomaniak | Switzerland | ~€5/mo | Yes | No | No |
Migrating from AWS
The most common AWS services and their EU equivalents:
| AWS Service | EU Alternative |
|---|---|
| EC2 | Hetzner Cloud, Scaleway Instances, OVHcloud Compute |
| S3 | Hetzner Object Storage, Scaleway Object Storage |
| RDS | Scaleway Managed DB, OVHcloud DB |
| EKS | Scaleway Kapsule, OVHcloud Managed Kubernetes |
| CloudFront | Bunny.net CDN (Netherlands), Gcore CDN |
| Route 53 | OVHcloud DNS, IONOS DNS |
Recommended setup for EU startups
Minimal EU-hosted stack (€10–20/month total):
- Hetzner Cloud VPS (CX32: 4 vCPU, 8 GB RAM) — €8.29/month
- Hetzner Object Storage for files and backups
- Plausible Analytics for web analytics (EU-hosted)
- Proton Mail for business email
This stack keeps your core data with European providers and costs a fraction of AWS. Check each vendor's DPA and sub-processor list before relying on it for regulated data.
Production stack for growing teams:
- Scaleway Kapsule (Kubernetes) for containerised workloads
- Scaleway Object Storage for assets
- Scaleway Managed PostgreSQL for the database
- Monitoring: a tool of your choice. Note that Grafana Labs and Better Stack are US-incorporated companies, so if strict EU ownership is a requirement, self-host your monitoring on your own EU servers instead
Browse all EU cloud infrastructure providers on EU Alts, or explore the full cloud infrastructure category to compare options side-by-side.
Frequently asked questions
Is AWS GDPR compliant if you use an EU region?
Not automatically. AWS is a US company subject to the CLOUD Act, which means US authorities can compel AWS to disclose data stored on EU servers without notifying the data owner. Choosing eu-west-1 or another EU region reduces latency but does not remove US jurisdiction. You still need SCCs and a DPA, and the underlying legal risk remains. European providers without a US parent, such as Hetzner or Scaleway, avoid the most direct exposure, though you should still verify ownership and select EU-only regions.
What is the cheapest EU alternative to AWS EC2?
Hetzner Cloud consistently offers the best price-to-performance ratio in the EU. A CX22 instance (2 vCPU, 4 GB RAM, 40 GB SSD) starts at approximately €3.79/month — roughly one-third the cost of a comparable AWS EC2 instance. For S3-equivalent object storage, Hetzner Object Storage costs €0.0059/GB/month versus AWS S3 at ~€0.023/GB/month.
Which EU cloud providers support managed Kubernetes?
Scaleway Kapsule, OVHcloud Managed Kubernetes, and IONOS Managed Kubernetes all offer EU-hosted managed Kubernetes clusters. Scaleway's Kapsule is the most developer-friendly option with a transparent pricing model. OVHcloud has the widest geographic distribution, including regions outside the EU. For cost-sensitive setups, running k3s on Hetzner dedicated nodes is another popular choice in the EU self-hosting community.
Do EU cloud providers support S3-compatible object storage?
Yes. Hetzner, Scaleway, OVHcloud, Contabo, and IONOS all offer S3-compatible object storage. You can use standard AWS SDK clients (e.g., @aws-sdk/client-s3 or boto3) by setting a custom endpoint URL — no code changes beyond the endpoint and credentials configuration. Select an EU region explicitly: several of these providers also operate locations outside the EU.
What certifications should I look for in a GDPR-compliant cloud provider?
The key certifications for EU cloud compliance are: ISO 27001 (information security management), SOC 2 Type II (security controls audit), BSI C5 (German Federal Office for IT Security — particularly relevant for German-regulated industries), and HDS (French healthcare data hosting certification). For public sector workloads in France, look for SecNumCloud (ANSSI qualification).
Can I run a stack for under €20/month on EU infrastructure?
Yes. A practical setup: Hetzner CX22 VPS (€3.79/month) running a Next.js or similar app, Hetzner Managed PostgreSQL (from ~€6/month), and Hetzner Object Storage for file uploads. Add Plausible Analytics for privacy-compliant web analytics (€9/month on their EU cloud). Total: under €20/month, with European providers throughout. Check each vendor's DPA and sub-processors.