Municipalities spend 185 million a year on tech giant Microsoft: 'Amount shows the extent of dependency'

Dutch municipalities spent approximately 185 million euros on Microsoft software and services in 2025. Investigations reveal that cities like Amsterdam, Rotterdam, and Utrecht contribute millions annually, raising concerns among IT experts and politicians about the Netherlands' digital autonomy and heavy reliance on American technology firms. While the government officially aims to increase technological sovereignty, critics argue that these expenditures represent a significant drain on public funds that could otherwise support local European tech companies.

The Association of Netherlands Municipalities (VNG) acknowledges this dependency, citing the need for continuity in public service delivery as a primary reason for maintaining these contracts. Experts warn that the 185 million euro figure is likely only the tip of the iceberg, as total annual government IT spending on non-European providers could range into the billions. Despite calls for transparency and a shift toward independent digital infrastructure, many local governments struggle to transition away from established tech giants.