Telefónica and Indra negotiate a possible alliance to create a sovereign cloud in Europe

Telefónica and Indra are holding preliminary talks about creating a joint cloud services company in Europe. The initiative would target governments, public administrations, critical infrastructure and large companies, with the aim of offering services that strengthen European control over data and the technology used to manage it.

For now, no final decision has been made: Indra has described the contacts as “exploratory,” and Telefónica has declined to comment. The scope of the collaboration, the division of responsibilities between the companies and the timeline have also not been specified. The creation of a joint company therefore remains a possibility, not a concluded agreement.

European technology, with limitations in key components

The proposal points to operating with predominantly European infrastructure and technology. However, that ambition does not mean that every component would be of European Union origin. GPUs, processors specialized in graphics and artificial intelligence tasks, are one example of an area in which, according to the available information, there are no equivalent European manufacturers.

For potential customers, a cloud’s sovereignty depends on more than where data is stored. It also matters where data is processed, who can access it and under what legal framework the service is provided. The proposal described aims to address these concerns, although its technical characteristics and the specific safeguards it would offer have not yet been detailed.

One open question is whether the potential alliance would build its own data centers in Spain or use other infrastructure. That decision would affect the operating model, but no option has been announced. In any case, the sources consulted indicate that building data centers capable of competing with major global providers would require very large investments.

The European framework and public procurement

The initiative is part of the debate over European technological autonomy and the EU’s future Cloud and AI Development Act, which, according to published reports, would prioritize local providers for managing confidential or sensitive information. The final scope of that law and its effects on procurement will depend on its final text; no specific requirements applicable to the potential joint company have been detailed here.

Technological sovereignty is not, by itself, a guarantee of regulatory compliance. Data location is a relevant consideration, but access, processing and control conditions also matter. Because the negotiations are at an early stage, the mechanisms the potential platform would apply in these areas are unknown.

A collaboration yet to be defined

Telefónica and Indra have already explored other avenues for cooperation, including possible cybersecurity and cyberdefense projects. That precedent shows that the companies have considered working together in strategic technology fields, but it does not confirm that the cloud initiative will go ahead or that it would follow the same model.

SEPI is a major shareholder in both companies: it owns 28% of Indra and 10% of Telefónica. This stake places the potential alliance in a context of public interest in industrial policy and digital sovereignty. However, it does not in itself demonstrate formal government backing for the project: the available sources do not confirm approval by the Spanish government or a public investment commitment.

For organizations seeking cloud providers with greater European control, the development of this initiative will depend on decisions that have yet to be made: whether the company is established, what infrastructure it will use and what commitments it can offer regarding data residency and access. Until these points are clarified, the alliance should be understood as an exploratory negotiation, not as an available service.