Evroc, a Swedish startup with ambitions to establish a hyperscale cloud company in Europe, has successfully raised €50.6 million ($55 million) in Series A funding. The company’s goal is to lay the groundwork for a “secure, sovereign, and sustainable hyperscale cloud” that will redefine Europe’s digital future.

This announcement comes at a time when there is a growing demand for the creation of a European tech stack, one that is independent of U.S. tech firms and the shifting political landscape. Recently, a coalition from across Europe’s tech industry called for “radical action” from lawmakers to reduce the region’s reliance on foreign-owned digital infrastructure, advocating for homegrown alternatives to various digital services.

Evroc aims to capitalize on this momentum by building data centers and a range of cloud services. Since its launch in 2023, the company has outlined plans to establish eight data centers by 2028. Currently, it has two co-location facilities in Stockholm and another two in Paris, with two more facilities expected to be operational in Frankfurt by the end of the second quarter of this year.

Additionally, Evroc is working on its first flagship data centers in Sweden and France, scheduled for completion in 2026, with a primary focus on AI workloads. These data centers are designed to meet the high energy density requirements for AI, with racks capable of consuming 20 times more power than traditional server racks. They will be equipped with liquid cooling and will host both compute and storage servers.

Evroc’s formal launch is planned for later this year, with the company already working with early beta customers in industries that require a high level of sovereignty, including defense, public sector, healthcare, and financial services. The company also hints at the possibility of additional data centers being announced next year, although specifics have not been confirmed.

Digital Sovereignty

The concept of digital sovereignty in Europe is not new, with many U.S. tech giants already investing in local infrastructure to ensure compliance with EU data residency regulations. However, with rising geopolitical tensions, control over Europe’s infrastructure has become increasingly important.

Recent events, such as Donald Trump’s executive order authorizing economic sanctions against the International Criminal Court, have highlighted the need for infrastructure independence. Similarly, Elon Musk’s admission to throttling Ukrainian access to Starlink satellites and his subsequent claims about the potential consequences of turning off the service have served as a reminder of the importance of sovereignty.

Evroc’s CEO and founder, Mattias Åström, emphasizes the need for Europe to control its own destiny and build something better. The AI revolution has created a new landscape where organizations must consider the cloud to fully leverage AI, and several European startups are already building cloud infrastructure in Europe.

However, while many of these players focus on AI computing, Evroc aims to build an extensive, developer-friendly hyperscale cloud that is more akin to AWS and its ilk. The company has a team of over 60 employees, mostly focused on software development, spread across Sweden, France, and the U.K.

Show Me the Money

Evroc initially launched with €13 million in funding and had planned to raise up to €3 billion in capital within a couple of years. The company has now closed its Series A round at €50.6 million, with investments from U.S.-European venture firm Blisce, EQT Ventures, Norrsken VC, and Giant Ventures.

While the company still plans to raise billions, the focus for now is on building the software stack. Evroc plans to raise significantly more capital later in 2025, following a funding model similar to other cloud infrastructure players, which has grown their footprint by borrowing against collateral such as Nvidia chips.

According to Åström, building out data centers will require a lot of additional investment, but this can be financed with debt. The company’s goal is to establish a secure, sovereign, and sustainable hyperscale cloud that will redefine Europe’s digital future.