Evroc Raises $55M for European Hyperscale Cloud

Evroc Secures €50.6 Million to Develop European Hyperscale Cloud

A Swedish-based startup, Evroc, is poised to establish a significant presence in the European cloud computing market. The company has successfully raised €50.6 million, equivalent to $55 million, in a Series A funding round.

Evroc’s stated mission is to construct a secure, sovereign, and sustainable hyperscale cloud infrastructure. This initiative is intended to redefine the digital landscape within Europe.

Growing Demand for European Tech Independence

This funding announcement arrives during a period of increasing advocacy for a self-sufficient European technology ecosystem. There's a rising desire for independence from U.S.-based technology companies, particularly given the evolving geopolitical climate.

Recently, a collaborative effort from across the European tech sector urged legislators to take “radical action.” The goal is to lessen the region’s dependence on foreign-controlled digital infrastructure and promote the development of domestic alternatives.

Evroc’s Expansion Plans

Evroc intends to leverage this growing momentum by constructing a network of data centers and a comprehensive suite of cloud services. The company initially revealed plans in 2023 to establish eight data centers by 2028.

Currently, Evroc operates two co-location facilities located in Stockholm, alongside an additional two in Paris. These facilities represent the initial phase of its infrastructure build-out.

Data Center Development and AI Focus

The company anticipates bringing two more facilities online in Frankfurt by the end of the current quarter. Simultaneously, construction is progressing on its primary flagship data centers in both Sweden and France.

These flagship facilities are projected to be completed in 2026, with a specific emphasis on supporting AI workloads. They are being engineered to accommodate the substantial power demands of artificial intelligence applications.

“Both will be equipped with liquid cooling but will also host compute and storage servers,” explained Evroc CEO and founder Mattias Åström to TechCrunch. “They are designed for the energy density required for AI, where racks can consume 20 times what a traditional server rack can.”

Beta Testing and Future Growth

Evroc is planning its official launch later this year. The company is already collaborating with select beta customers in sectors where data sovereignty is paramount.

These industries include defense, the public sector, healthcare, and financial services. Åström also indicated that further data center expansions are planned for the coming year, though specific details remain undisclosed.

• Funding Amount: €50.6 million ($55 million)
• Focus: Secure, sovereign, and sustainable hyperscale cloud
• Current Facilities: Two in Stockholm, two in Paris
• Future Facilities: Two planned for Frankfurt, flagship centers in Sweden and France

Digital Sovereignty

The concept of digital sovereignty within Europe isn't a recent development. Many prominent U.S. technology companies have already been making investments in localized infrastructure. This proactive approach ensures they adhere to the EU’s stringent data residency regulations.

OpenAI, a leading force in artificial intelligence, has also recently introduced a new service. This offering enables customers to process and securely store their data within European borders.

Beyond Server Locations

However, with increasing geopolitical instability, Åström emphasizes that simply having servers located in Europe isn't sufficient. True control over European infrastructure is paramount.

For instance, a recent executive order signed by Donald Trump authorized economic sanctions against the International Criminal Court (ICC), situated in the Netherlands. The stated reason was accusations of “illegitimate and baseless actions” directed towards the U.S. and Israel. These sanctions directly impact the ability of technology companies to provide services to organizations, as reported by The Guardian, which highlighted the ICC’s significant reliance on Microsoft’s Azure cloud platform for data storage.

Infrastructure Independence

Furthermore, Elon Musk, now significantly involved in U.S. governmental affairs, previously acknowledged restricting Ukrainian access to Starlink satellites, which are operated by his company, SpaceX. He later asserted that Ukraine’s entire frontline defense could collapse if he were to completely disable the service.

Although Musk subsequently revised his statement, the incident underscored the critical importance of infrastructure independence. This realization is a key driver behind the EU’s initiative to develop its own sovereign satellite constellation, designed to compete with Starlink.

“My primary goal is for Europe to have control over its own future,” Åström stated. “And concurrently, we aim to create something that surpasses existing solutions.”

The AI Revolution and Cloud Adoption

Aside from geopolitical concerns, the rapid advancement of artificial intelligence is compelling organizations that traditionally relied on on-premises infrastructure to explore cloud solutions. This shift is necessary to fully capitalize on the potential of AI.

Several European startups are actively engaged in building cloud infrastructure within Europe. These include FlexAI from France, DataCrunch based in Finland, and Nebius in the Netherlands – a company formed following the restructuring of Yandex last year.

While many of these companies concentrate on AI-specific computing, Evroc is focused on constructing a comprehensive, developer-centric hyperscale cloud. This ambition positions it as a direct competitor to established giants like AWS.

Evroc’s Development and Talent Acquisition

The majority of Evroc’s workforce, exceeding 60 employees, is dedicated to software development. These teams are strategically located across Sweden, France, and the U.K. Åström explained that the London office wasn’t initially part of the plan, but became essential for attracting highly skilled professionals from major technology corporations.

“I am particularly enthusiastic about our London office – it wasn’t in the original blueprint, but securing exceptionally talented individuals currently working for hyperscalers necessitated this decision,” Åström explained.

Securing Funding for Cloud Infrastructure

Two years ago, Evroc emerged from stealth mode, having secured €13 million in initial funding. At that time, founder Åström communicated to TechCrunch his ambition to acquire up to €3 billion in capital within a two-year timeframe.

By August of the previous year, reports surfaced indicating Evroc had successfully raised €42 million during its Series A funding round. This round has now been finalized at €50.6 million, with contributions from Blisce, a U.S.-European venture firm, alongside EQT Ventures, Norrsken VC, and Giant Ventures.

The Capital Intensive Nature of Cloud Development

However, the substantial financial requirements for developing infrastructure comparable to that of major hyperscalers remain a central consideration. The question arises: does Evroc still intend to pursue billions in funding?

Åström clarified that this remains the objective, but emphasized the immediate priority is the development of a robust software stack. “Europe possesses a considerable number of data centers, yet a fully-fledged cloud infrastructure is lacking,” he stated. “This equity round is instrumental in constructing that essential software foundation.”

Future Funding Strategies

The company anticipates seeking further substantial capital investment later in 2025. This approach mirrors the funding strategies employed by other cloud infrastructure companies, such as CoreWeave.

CoreWeave has expanded its operations by leveraging debt secured against assets like Nvidia chips. Åström explained that expanding data center capacity will necessitate significant further investment.

“Fortunately, this expansion can be financed through debt,” Åström added.

• Evroc initially raised €13 million.
• The Series A round closed at €50.6 million.
• Key investors include Blisce, EQT Ventures, Norrsken VC, and Giant Ventures.