European cloud providers can only exist in niches at the moment: - cheap but unreliable -> hetzner - integrated into the DFN -> gwdg - and so on

The market is captured by us companies. I doubt that this will change.

The reason is simply that the the number of clients that care for the problems described is small compared to the total market. If you run a company that caters to these clients, you will cater to a small market with special requirements.

Companies like that tend to be pricy and hence won’t take market share from Americans.