Swiss Health Data: Direct Attack on US Cloud Dominance?

A major contract for the IT industry is turning into a political thriller in Switzerland. The Federal Office of Public Health (FOPH) is driving the digital leap in healthcare forward with the project “Swiss Health Data Space” (SwissHDS). The goal is a networked data space for the exchange of patient data between doctors and hospitals. It involves a double-digit million budget – and a fundamental decision on digital sovereignty.

The sensitivity lies according to the NZZ in the requirements catalog: The infrastructure must be exclusively subject to Swiss law and must not show any dependence on external jurisdictions. The FOPH explicitly names the US Cloud Act. This would effectively close the doors to industry giants like Microsoft, Google, or AWS. Since these corporations – regardless of server location – must grant US authorities access, they would hardly be able to meet the Swiss conditions.

Internally, the language at the FOPH is even clearer. The NZZ quotes from emails stating that dependence on states that could “pull the plug” in an emergency is considered particularly risky. The population's trust depends crucially on the state being able to guarantee the protection of highly sensitive health data from foreign access. This aligns with resolutions from data protectionists who see public administrations as particularly responsible here.

The WTO Conflict and Diplomacy

The initiative for SwissHDS puts Bern in an awkward position. The Federal Office for Buildings and Logistics (BBL), responsible for procurement, is already cautiously backtracking and describes the wording as “clumsy.” The reason: Switzerland is bound by WTO rules that require equal treatment of all bidders. A blanket exclusion of US companies could be considered illegal protectionism under international law. The issue resembles a diplomatic minefield, as Switzerland is simultaneously negotiating trade agreements with the Trump administration.

Proponents of the initiative see digital sovereignty as a mandatory technical security requirement. Marc Wilczek, CEO of the German provider Plusserver, praises the growing awareness of sovereignty. The protection of critical data is no longer an optional extra. Critics, however, warn of “ideological isolation.” The renunciation of US technology could make IT projects pricier and slow down innovation. In general, Switzerland is closely intertwined with the US tech sector: Google operates its largest development site outside the USA in Zurich.

Whether the strict requirements will hold up until the final tender is likely to be the acid test for the Swiss' political steadfastness towards Washington.

(wpl)