Dutch politicians raise concerns over Big Tech reliance

Two Dutch political parties, GroenLinks-PvdA and NSC, have presented a detailed proposal advocating for a Dutch cloud infrastructure to prevent what they see as an impending over-reliance on foreign technology providers. 

The Clouds on the horizon proposal urges the Dutch government to take decisive action, cautioning that there will be no room for its own cloud providers without intervention, and the nation will lose control over sensitive government data.  

“If we were to physically move ministries to buildings in California, there would be an uproar,” said Barbara Kathmann, a GroenLinks-PvdA MP. “Yet, when we transfer our entire digital infrastructure to Microsoft in the US, no one bats an eye.”

Several Dutch ministries rely on shared service centres to manage data and IT services, many of which have chosen Microsoft Azure as their primary cloud provider.

Although ministers have often spoken about reducing the power of large US IT companies, the government’s choices in IT infrastructure still favour large foreign providers due to convenience and cost-effectiveness. “By outsourcing to Big Tech, we are handing over the keys to our country’s data,” NSC warned.

Although this trend is not unique to the Netherlands, the clear political call to action aimed at reclaiming digital control is what sets this situation apart.

GroenLinks-PvdA and NSC argue that if Dutch ministries continue to outsource essential digital services to foreign providers, national security, data privacy and the future of the Dutch technology sector are at risk.

Data sovereignty is central to GroenLinks-PvdA and NSC’s proposal. Their concerns are underscored by the scale of government IT investments, with the 2023 government report on significant ICT projects showing total commitments of €6bn across multiple years.  

When Dutch government data is stored with foreign providers, it becomes subject to foreign laws and regulations, potentially exposing it to authorities outside the Netherlands – a serious concern given the strict compliance requirements of European data protection laws such as the General Data Protection Regulation.

“How the government has handled our data and digital services over the past decades has been too short-sighted and complacent,” said Jesse Six Dijkstra, an NSC MP. “Once the Netherlands can no longer manage its own ICT systems, citizens will ultimately face problems.”

The parties envision a future where government tools such as email and chat systems remain firmly under Dutch control, managed on national soil to safeguard data security. Their ambitious proposal aims to shift at least 30% of the government’s cloud services to Dutch providers by 2029, representing hundreds of millions of euros in spending.

This transition would bolster local businesses and reduce the government’s reliance on foreign tech giants.

To ensure successful implementation, the parties propose empowering chief information officers with direct responsibility for maintaining strategic data autonomy. Their vision reflects a fundamental shift in Dutch IT policy, where digital sovereignty becomes a core requirement rather than an optional consideration.

European momentum

While critics raise concerns about the feasibility of implementing a national cloud infrastructure, highlighting potential high costs and implementation challenges, the Netherlands is not starting from scratch. The country already hosts the Cloud Infrastructure Coalition (CIC), a consortium of Dutch companies in the cloud, hosting and digital infrastructure sectors.  

With its focus on innovation and public-private partnerships, the CIC demonstrates that Dutch expertise and infrastructure already exist. This existing foundation could prove crucial in translating GroenLinks-PvdA and NSC’s vision into reality. 

The timing of this proposal aligns with broader European movements towards digital sovereignty. France, for example, has led the Gaia-X project, a collaborative European cloud initiative focused on data protection and autonomy, while Germany is working to keep its data infrastructure under local control.

These European initiatives provide both context and momentum for the Dutch proposal. Supporters argue that a shared European approach could mitigate risks associated with foreign providers while fostering growth for local tech firms. 

Research by TNO underscores the urgency of the situation, highlighting that over 90% of Western data is hosted in the US. This renders not just the Netherlands, but all of Europe economically and politically vulnerable. By investing in local data infrastructures and developing sovereignty-focused policies, individual nations like the Netherlands can contribute to broader European resilience while protecting their national interests. 

Political hurdles

The proposal by GroenLinks-PvdA and NSC has sparked significant debate in Dutch political circles. Supporters argue that a national cloud infrastructure is essential for safeguarding sensitive government data and controlling crucial digital systems. Organisations such as the Dutch Cloud Community have expressed support for this move, calling on the government to prioritise Dutch and European providers when choosing cloud services. 

However, the proposal has its critics. Opponents have raised concerns about the feasibility of implementing a national cloud infrastructure, highlighting the high costs and potential difficulty of competing with the established infrastructure of major providers such as Microsoft and Amazon.

There are also practical considerations: limiting access to Big Tech’s cost-effective services might lead to higher government operational costs, potentially slowing innovation in the public sector. 

The proposal for a national cloud infrastructure to reduce dependency on US tech giants was presented to the Dutch House of Representatives in June 2024. As of September, the parliamentary Committee on Digital Affairs has raised questions for members Dijkstra (NSC) and Kathmann (GroenLinks-PvdA) regarding the plan’s feasibility and impact. While awaiting their detailed responses, further proceedings, such as scheduling a full parliamentary debate, depend on the House of Representatives’ priorities and agenda. 

This period of review and questioning allows stakeholders to examine both the potential benefits and challenges of creating a Dutch cloud infrastructure. However, the proposal’s significance already extends beyond mere technical considerations.  

The debate represents a crucial moment in the Netherlands’ digital future, balancing national sovereignty with technological progress. Whether this leads to a Dutch cloud infrastructure or alternative solutions, the initiative has already succeeded in one crucial aspect: firmly establishing digital independence on the national agenda.