Saturday, January 18, 2025

Dutch Politicians Express Worries About Dependence on Big Tech

Two Dutch political parties, GroenLinks-PvdA and NSC, have put forward a bold plan for developing a national cloud infrastructure. They believe that relying too much on foreign tech companies poses a risk to the country’s control over sensitive government data.

Their proposal, dubbed “Clouds on the Horizon,” urges the Dutch government to act now to prevent a future where local cloud providers vanish and the nation loses oversight of critical information. Barbara Kathmann, a member of GroenLinks-PvdA, pointed out the irony in how there’d be public outcry if ministries physically relocated to California, yet transferring digital infrastructure to Microsoft goes unnoticed.

Currently, several Dutch ministries depend on shared service centers that often opt for Microsoft Azure for their data and IT needs. While ministers voice concerns about the dominance of major US tech firms, the government continues to lean toward these foreign providers because of convenience and cost. NSC warns that outsourcing to Big Tech essentially surrenders control of the country’s data.

This issue isn’t just a Dutch problem, but the political push for digital sovereignty sets this situation apart. GroenLinks-PvdA and NSC claim that continued outsourcing could jeopardize national security and data privacy, as well as harm the Dutch tech sector.

At the heart of their proposal is a desire for data sovereignty. The government is committing significant funds—€6 billion in 2023 alone—to ICT projects, making it crucial to manage this investment wisely. When data is stored with foreign companies, it falls under their laws, which can expose information to outside scrutiny. Jesse Six Dijkstra from NSC emphasized that the government has been short-sighted and that a lack of management over ICT systems will lead to issues for citizens.

The parties envision keeping government tools like email and chat systems under Dutch control within the country to maintain data security. They aim to shift at least 30% of cloud services to local providers by 2029, promising to channel hundreds of millions of euros into this effort. This move would not only support local businesses but also lessen reliance on foreign tech giants.

To make this happen, they propose giving chief information officers the authority to ensure data autonomy is prioritized. This vision represents a turning point in Dutch IT policy, focusing on digital sovereignty as a fundamental requirement.

While some critics express doubts about the cost and feasibility of a national cloud, the Netherlands isn’t starting from scratch. The Cloud Infrastructure Coalition (CIC), a group of local tech firms, is already making strides in cloud and digital infrastructure. This coalition showcases that the expertise and foundation are in place for this ambitious vision.

Timing is also critical, as this proposal aligns with broader European trends towards digital sovereignty. Countries like France and Germany are pushing initiatives that emphasize data protection and local control. These European movements not only add context to the Dutch proposal but also create momentum for similar approaches.

Research by TNO highlights the urgency of the situation, revealing that over 90% of Western data is hosted in the US. This reliance jeopardizes not just the Netherlands but all of Europe, making local data infrastructure vital for economic and political resilience. Nations like the Netherlands can strengthen both their own sovereignty and that of Europe by developing robust, local data policies.

The proposal has sparked intense debate within Dutch politics. Supporters advocate that creating a national cloud is crucial for protecting sensitive data. Organizations such as the Dutch Cloud Community back this effort, urging the government to choose local and European providers.

However, the proposal isn’t without its critics. Some question the practicality of implementing a national cloud, citing the expense and the challenge of competing with the established systems of giants like Microsoft and Amazon. Others worry that curtailing access to these cost-effective services could raise government operational costs and slow public sector innovation.

The idea was introduced to the Dutch House of Representatives in June 2024. By September, the parliamentary Committee on Digital Affairs was already asking questions about the proposal’s practicality and possible effects. The next steps, including a comprehensive parliamentary debate, depend on the House’s current priorities.

This ongoing review period allows all parties involved to assess the benefits and challenges of creating a Dutch cloud infrastructure. Regardless of what the outcome will be, this proposal has successfully placed the topic of digital independence firmly on the national agenda.