Germany's armed forces have rejected Palantir's bid to participate in its flagship military cloud project, citing data sovereignty concerns. Vice Admiral Thomas Daum, the nation's top cyber and information space officer, emphasized the incompatibility of granting a private U.S. firm access to sensitive national databases.

The decision deals a blow to American tech firms reliant on government contracts amid tightening revenue streams. Palantir's Maven platform, already deployed across NATO and member states, will play no role in Germany's secure private cloud for defense-related AI and data processing.

Three European contenders—two German and one French—remain in contention for the contract. The move underscores growing geopolitical tensions in tech infrastructure, with nations prioritizing control over critical digital assets.