OVHcloud’s Public Cloud Business Becomes Its Fastest-Growing Bet Against US Tech Giants

French cloud provider OVHcloud is seeing its public cloud division emerge as the clear growth engine as European organisations seek alternatives to the US hyperscalers. In the third quarter of its 2026 financial year, public cloud revenue rose 20.2% like-for-like to €65.6 million, significantly outpacing the group’s overall organic growth of 6.9%.

Public cloud now accounts for nearly 23% of OVHcloud’s revenue. Private cloud remains the largest segment but is growing more modestly at around 4%. The acceleration in public cloud reflects rising demand for European-controlled infrastructure that keeps data within the EU and avoids exposure to US laws such as the Cloud Act. Sovereignty has moved from a compliance talking point to a procurement requirement for many public-sector and regulated private customers.

OVHcloud operates more than 40 data centres across ten countries and emphasises full ownership of its infrastructure. The company has also expanded its AI-related offerings, including an AI Lab and preview of OVHai Workspace, positioning itself for the next wave of European AI workloads that require both performance and data residency guarantees.

While still a fraction of the size of Amazon Web Services, Microsoft Azure or Google Cloud, OVHcloud’s growth rate in public cloud is notable in a market still dominated by the three US giants (which together hold roughly 63% share). European cloud providers collectively remain a minority, but demand for trusted local capacity is translating into measurable commercial progress. Airbus, for example, plans to run dozens of critical applications on European cloud platforms in the coming years.

OVHcloud has confirmed its full-year 2026 guidance, including positive levered free cash flow. The public cloud trajectory suggests the company is successfully converting Europe’s sovereignty concerns into recurring revenue. For customers and policymakers seeking credible alternatives to the hyperscalers, OVHcloud’s numbers provide one of the clearer data points that the strategy can work.