Cloud
Computing
Computing
At the core of the digital infrastructure are two distinct, yet complementary, distributed computing frameworks. On one hand, cloud computing – the core focus of this chapter - provides vast, on-demand access to scalable processing power and data storage via the network, through private and public cloud providers. Cloud computing allows organisations and individuals to pay on demand instead of investing in their own costly infrastructure. On the other hand, edge computing pushes computing functions closer to where local data is generated – at the network’s edge. Edge computers enable real-time responsiveness to the local data, reduce network traffic, maintain functionality during disconnections from central systems, and ensure that sensitive data can remain on the local device. Edge computing has developed rapidly due to the explosive growth of the IoT-devices (Internet of Things) loaded with large amounts and large varieties of data-producing sensors in e.g. cars, healthcare devices, public infrastructure, and manufacturing machines. Once viewed as separate approaches, these two frameworks are increasingly converging into a unified framework known as the computing continuum. This continuum seamlessly connects the smallest sensor in a peripheral device to a supercomputer in a central data centre, facilitating a variety of data processing capabilities.
The primary catalyst driving the computing continuum is the relentless advance of artificial intelligence (AI). For optimal operation of today’s AI systems and the demands, there are two principal requirements. First, it needs massive, centralised high-performance computing (HPC) resources for AI model training and large-scale and complex data analysis. Second, to ensure low latency during operation, decentralised processing is necessary to run these AI models, or their compact versions, in real-world applications, including, for example, synchronising with the cloud for further big data analysis.
The current cloud computing landscape is significantly influenced by strategic global competition. Hyperscalers (large technology companies that provide cloud computing services on a massive scale) are at the forefront of this dynamic. Hyperscalers such as Amazon Web Services (AWS), Google Cloud, Oracle Cloud Infrastructure (OCI), and Microsoft Azure deliver powerful services and have highly dominant market positions in regions like the US and Europe. Countermeasures in Europe are evolving to strengthen Europe’s digital sovereignty in the cloud sector. In 2025, the European Commission proposes the Cloud and AI Development Act, intending to at least triple the EU’s data centre capacity within the next 5 to 7 years. These kinds of (policy) developments will lead to expanded European cloud infrastructures – both private and public – to meet the needs of EU businesses and public administrations who favour sovereign cloud services including European data residency. However, European-level collaboration is paramount for this ambition whereby initiatives like Gaia-X and European Open Science Cloud (EOSC) offer lessons learned.