Europe Must Build Its Own Defense Software Industry: Rethinking Security Beyond Hardware

The evolving geopolitical landscape, marked by Russia’s ongoing aggression, U.S. unpredictability under Trump, and technological advancements in warfare, has made it clear that Europe’s defense strategy must go beyond merely increasing military budgets and encouraging citizens to serve. Europe’s overreliance on American technology companies for defense-related software, surveillance, and AI-driven military intelligence is a vulnerability that can no longer be ignored. The continent must build a robust, indigenous security software industry to ensure strategic autonomy and protect its economic and security interests.

The Hidden Threat: U.S. Tech as a Strategic Lever

While Europe has long been wary of cyber espionage from China, Russia, and even its own allies like France, the U.S. has remained a trusted partner. However, the shifting political landscape in Washington is forcing European leaders to reconsider their dependency on American technology firms such as Palantir, Google, and Microsoft, which could be weaponized for strategic leverage.

The potential risks go far beyond concerns about privacy and data sovereignty. The U.S. government has expansive legal mechanisms, such as the CLOUD Act and FISA, that could compel American tech firms to share intelligence on European governments, businesses, and military operations. In a world where information dominance is crucial, such legal authority places Europe in a position of strategic vulnerability. If the Trump administration—or any future U.S. government—decides to prioritize American geopolitical interests over European security concerns, Washington could force these companies to extract sensitive intelligence from European partners without their consent.

Furthermore, the possibility of U.S.-supported corporate espionage against European firms is no longer a conspiracy theory but a real strategic risk. While activities like this were once associated with China, Russia, and even France—who were infamously caught spying on business travelers by installing wiretaps in Air France business class seats—Europe must now also contend with the likelihood that the U.S. could deploy similar tactics to gain economic and security advantages over its allies.

Additionally, AI and battlefield control technologies, such as the Pentagon’s Thunderforge initiative, highlight the growing entanglement between Silicon Valley and the U.S. military. Thunderforge, which integrates AI tools from Google and Microsoft to aid military decision-making, underscores the urgent need for Europe to develop its own AI-driven military intelligence systems. If Europe continues to rely on U.S. technology, it risks losing operational control over critical defense assets.

Europe’s Software Deficiency in Defense

For years, Europe’s defense spending has been hardware-focused—investing in tanks, aircraft, and munitions—while ceding software dominance to U.S. firms. This imbalance has created critical gaps in key areas that must be addressed urgently.

One major vulnerability lies in data analytics and intelligence gathering. Palantir remains the dominant player in military intelligence software, yet German states are already questioning their reliance on it due to privacy concerns and legal risks. Despite its effectiveness in data-mining for law enforcement and intelligence purposes, Palantir’s deep ties to U.S. security agencies raise concerns about how much control European governments truly have over their own intelligence data. In response, European companies like Helsing have emerged as potential alternatives, but they require significant investment and policy support to scale effectively.

Another glaring gap is in satellite communications. Elon Musk’s Starlink has been crucial in Ukraine’s battlefield connectivity, proving the importance of satellite-based military communications. However, as recent debates over Musk’s potential control over access to Starlink in wartime scenarios have shown, relying on a private U.S. firm for such a vital service is a dangerous gamble. Europe must develop its own secure satellite network, leveraging companies like Eutelsat and OneWeb to ensure it is not dependent on American goodwill for its battlefield communications.

Military AI and cybersecurity also demand urgent attention. AI-powered warfare is no longer science fiction; it is rapidly shaping the future of conflict. European AI startups, such as Mistral and Helsing, are beginning to collaborate on defense AI applications, but they need broader support and funding to compete with the dominance of U.S. defense-tech giants. Europe cannot afford to lag in AI-driven autonomous weapons, cyber defense, and predictive analytics for military strategy.

The Path Forward: European Digital Sovereignty in Defense

Europe has the talent, funding capacity, and urgency to build its own defense tech ecosystem. However, this requires coordinated action across governments, industries, and the private sector.

1. Create a European Military Tech Consortium

Much like Airbus consolidated Europe’s aeronautics industry, a unified European Defense Software Alliance should be established to drive innovation in security software, AI, and data intelligence. Germany’s Helsing and France’s Thales could spearhead this effort, ensuring that Europe has independent access to cutting-edge military software solutions.

2. Invest in Secure European Cloud and AI Platforms

The EU must prioritize developing its own secure cloud computing infrastructure for military applications, independent of Amazon AWS and Google Cloud. GAIA-X, the European cloud initiative, should be accelerated for military and intelligence use. Secure European cloud services would ensure that sensitive military data remains under European jurisdiction, rather than being subjected to U.S. oversight.

3. Build a European Alternative to Starlink

Europe cannot afford to rely on Elon Musk’s goodwill. A robust, independent military satellite network must be established, leveraging companies like Eutelsat and OneWeb. Ensuring secure, sovereign military communications is a strategic necessity for future conflicts and intelligence operations.

4. Strengthen AI and Cybersecurity for Military Applications

Europe must double down on AI-driven defense applications, expanding on the recent Mistral-Helsing partnership and increasing investment in AI for drone warfare, battlefield intelligence, and cyber warfare. AI-powered military systems will define future conflicts, and Europe must not be left behind in this critical domain.

5. Reduce Dependence on U.S. Defense Tech

European nations must prioritize European-built software for military intelligence, command-and-control systems, and battlefield communications. Governments should mandate procurement policies that favor European defense tech firms over American ones. While U.S. companies will remain important partners, Europe must have its own sovereign capabilities to avoid undue dependency.

A Strategic Imperative

Europe’s security is no longer just about guns, tanks, and troops—it’s about algorithms, satellites, and AI-driven intelligence. The growing risk of U.S. tech firms becoming strategic tools of Washington’s foreign policy under a transactional leader like Trump makes it imperative for Europe to achieve digital sovereignty in defense. The past assumption that American companies would always act in the best interest of European allies is no longer a safe bet. As history has shown—whether through Cold War-era espionage or France’s well-documented corporate intelligence operations using Air France—nations, even allies, will prioritize their own strategic interests.

By building its own military software ecosystem, Europe can secure its strategic autonomy, protect its economic competitiveness, and ensure that its security interests are dictated by Brussels, not Washington. The time for Europe to act is now. If it fails to build its own secure digital defense infrastructure, it risks being outmaneuvered both on the battlefield and in the boardroom.