Evroc Raises €50.6 Million to Propel European Hyperscale Cloud Initiative
Evroc, a Swedish technology startup, has successfully raised €50.6 million (approximately $55 million) in Series A funding. The company is on a mission to establish a robust hyperscale cloud infrastructure within Europe, emphasizing security, sovereignty, and sustainability to reshape the digital landscape of the region.
Background and Industry Context
The funding announcement comes at a time when there is an increasing push within Europe to develop a tech ecosystem that minimizes dependency on U.S. technology firms. Recently, a coalition of European tech leaders urged policymakers to take decisive measures to foster homegrown technological alternatives, including digital applications, AI models, and cloud services.
Evroc’s Plans for Expansion
Founded three years ago, Evroc is laying plans to build a series of data centers and cloud services, with ambitions to establish eight such facilities by the year 2028. Currently, the company operates two co-location facilities in Stockholm and two others in Paris.
By mid-2023, Evroc anticipates launching two additional facilities in Frankfurt, while construction is already underway for flagship data centers in Sweden and France, set to be operational by 2026, primarily focusing on Artificial Intelligence (AI) workloads. CEO and founder Mattias Åström highlighted the need for advanced energy density in these facilities, noting that they will support server racks with energy demands significantly higher than traditional setups.
Collaborations and Target Markets
Evroc’s formal launch is anticipated later this year, with Åström mentioning that the company is collaborating with select beta customers from sectors requiring high levels of data sovereignty, such as defense, healthcare, finance, and the public sector. He indicated plans for additional data center establishments in the coming year, although specific details are yet to be disclosed.
The Importance of Digital Sovereignty
The initiative aligns with Europe’s broader agenda for digital sovereignty, encouraging local control over digital infrastructure. This need for control has become increasingly relevant in light of geopolitical tensions, exemplified by recent sanctions initiatives that impact technology companies serving international organizations.
Åström has stressed that the significance of having independent infrastructure goes beyond mere geographical server placements, advocating for Europe to have better control over its digital destiny. This need for infrastructure independence is underscored by examples of reliance on major U.S. tech platforms, which have previously faced criticisms for their roles in geopolitical events.
The Competitive Landscape
As the AI sector continues to expand, various European startups are emerging with similar objectives to develop cloud infrastructure. Notable examples include FlexAI from France and Nebius in the Netherlands. However, Evroc seeks to distinguish itself by aiming for an extensive, developer-friendly hyperscale cloud reminiscent of leading providers like AWS.
The company’s workforce of over 60 employees primarily focuses on software development, dispersed across Sweden, France, and the UK. Åström noted that establishing a London office became essential for attracting top talent from leading technology firms.
Funding Goals Moving Forward
Evroc initially launched with €13 million in funding two years ago, with Åström expressing ambitions to raise as much as €3 billion in total capital in the coming years. After amassing €42 million as part of its Series A by the previous summer, the company has now successfully raised its total to €50.6 million, backed by investors such as Blisce, EQT Ventures, Norrsken VC, and Giant Ventures.
While efforts to scale up remain ambitious, Åström acknowledged the necessity of building a solid software foundation first. He expressed confidence in leveraging further investment strategies, including debt financing for future data center developments, as Evroc continues to establish itself in the competitive cloud infrastructure market.