A quiet rebellion is unfolding across European capitals against one of Silicon Valley’s leading data companies. Authorities in countries such as France, Germany, and Spain are taking steps to reduce their dependence on Palantir Technologies, the American data-analytics firm deeply embedded in the continent’s policing, defense, health, and intelligence sectors—and they are finding it challenging to break free.
A movement for a “Sovereign Digital Backbone” gained traction last month when French and German security officials proposed developing a local alternative to American data infrastructure, as reported by POLITICO. Insiders from both sides of the Atlantic interpreted this as a clear indication of Europe’s desire to end its reliance on Palantir.
These actions are already evident in practice. Spain’s government, led by Prime Minister Pedro Sánchez, has instructed state-affiliated firms to exclude Palantir in future public contracts. In France, the domestic intelligence agency opted for the French company ChapsVision over Palantir for a significant project. In the UK, a larger decision looms in February 2027, when the Labour government, under Andy Burnham, will need to determine the future of Palantir’s approximately £330 million contract with the National Health Service.
However, Palantir’s technology is widely acknowledged as exceptionally effective. French digital sovereignty advocate Philippe Latombe likened the company’s influence to that of an addictive product, highlighting how its extensive experience with numerous clients has made its data-processing tools difficult to rival.
Palantir’s executives show little worry about the European dissent. CEO Alex Karp downplayed the notion of significant threats from European rivals during a recent TV interview. Meanwhile, Olivier Dellenbach, CEO of ChapsVision, told POLITICO that his firm has benefited from a strong wave of anti-Palantir sentiment, though he warned that genuine digital sovereignty requires sustained public investment, beyond simply opposing a single company.
Several European countries, including Belgium, Germany, Luxembourg, Romania, and the Netherlands, as well as Canada, have reportedly shown interest in an alternative system developed by the French defense firm Thales. Yet, NATO’s supreme allied commander for transformation, Admiral Pierre Vandier, admitted that the alliance currently lacks anything comparable to Palantir’s AI capabilities for battlefield operations—from processing satellite imagery to advising strikes and automatically triggering munitions resupply.
Palantir’s establishment in Europe grew gradually, often following crises. The company entered France after the 2015 Paris terrorist attacks, securing a contract with domestic intelligence in 2016. In Germany, Hesse police adopted Palantir’s Gotham platform in 2017 under the name “hessenDATA.” In the UK, Palantir’s involvement with the NHS reportedly began with a nominal £1 fee to help manage data during the Covid-19 pandemic.
This trend has meant that the company’s software is now embedded not only in government but also in European industries—clients of Palantir’s Foundry platform include Airbus, BMW, BP, and media group Axel Springer.
The debate over Palantir in Europe goes beyond technical issues. Co-founded by CEO Alex Karp and billionaire investor Peter Thiel—a prominent supporter of former U.S. President Donald Trump—the company has faced scrutiny over its collaborations with U.S. immigration enforcement and the Israeli military. French lawmaker Aurélien Saintoul accused the company’s founders of pursuing a political agenda he termed “technofascist,” claiming that Thiel’s ideology separates the defense of freedom from democracy.
A Palantir spokesperson dismissed these criticisms as ridiculous, noting that similar allegations have come from Russian state officials, and emphasized the company’s support for Ukraine’s military as evidence of its allegiances.
Despite discussions of sovereignty, European banks and asset managers reportedly increased their investment in Palantir over the last year, according to investigative outlet Follow the Money, highlighting the tension between political rhetoric and market reality.
Palantir’s ambitions in Europe are, in fact, expanding. On July 1, its Maven Smart System—originally developed for the Pentagon—became fully operational within NATO’s classified network, integrating command-and-control systems across the alliance. Additionally, American competitors are following Palantir’s strategy: Amazon Web Services recently committed $1 billion to embed engineering teams directly within client organizations, and Microsoft announced a $2.5 billion initiative to place thousands of specialists into customer operations.
German Green MEP Hannah Neumann articulated the concerns of critics: permitting public institutions to rely on software controlled by a few U.S. tech billionaires risks transferring part of the democratic state’s authority to a private actor accountable to neither voters nor parliament.
Currently, Europe’s alternatives remain fragmented, and it is generally accepted that no domestic competitor matches Palantir’s scale or expertise, indicating that any genuine move toward digital sovereignty is likely to be gradual, costly, and contested at each stage.
Leave a Reply