Choosing an EU-Hosted Inference Provider
European teams building with LLMs face a new problem. Where do you run inference?
US options are fast. They are cheap. But routing sensitive data through US infrastructure creates GDPR and data residency risks.
European providers now offer an alternative for running open-source models inside the EU. Each provider has different strengths.
Here is how to choose.
Key criteria for your workload:
- Data residency: Are requests processed in the EU? Is it contractually guaranteed?
- Pricing: Do you want pay-per-token (serverless) or a fixed rate for high loads (dedicated)?
- Model choice: Do you need a wide catalog or just one specific model?
- Integration: Does the provider use OpenAI-compatible APIs? This makes switching easy.
The main EU options:
Lyceum
- Best for: Low-cost, drop-in inference on many open-source models.
- Pros: Broad model catalog (DeepSeek, Llama, Qwen). OpenAI-compatible. Scale from inference to training on one platform.
- Cons: Dedicated endpoints are still in beta.
Scaleway
- Best for: Teams wanting serverless inference from a large French cloud.
- Pros: Low latency in Europe. GDPR-compliant. Backed by an established cloud provider.
- Cons: Prices can be higher than the cheapest options.
IONOS
- Best for: German SMBs wanting a trusted API with built-in RAG.
- Pros: Models hosted in Germany. Includes a vector database.
- Cons: Smaller model catalog. Higher cost per token.
STACKIT
- Best for: Regulated enterprises in Germany that prioritize compliance.
- Pros: High security certifications (ISO 27001, C5). Data is not used for training.
- Cons: Very limited model selection.
Mistral
- Best for: Teams that only use Mistral models.
- Pros: Very competitive pricing on output. High-quality in-house models.
- Cons: You only get Mistral models. No DeepSeek or Qwen.
Summary Table:
- Lyceum: Pay-per-token | Broad catalog | All-in-one platform.
- Scaleway: Pay-per-token | Good catalog | Established French cloud.
- IONOS: Pay-per-token | Limited catalog | German SMB focus.
- STACKIT: Pay-per-token | Very limited | Regulated enterprise focus.
- Mistral: Pay-per-token | Mistral only | Model specialist.
The best choice depends on your needs.
If you want a broad catalog and low prices, look at Lyceum. If you only need Mistral, go with Mistral. If you need a trusted German brand with RAG, use IONOS.
Practical tip: Most providers offer free trials. Run your actual prompts through two or three options. Compare the real cost and latency on your own data before you commit.
Which provider do you use? Does price or compliance matter most to you?
Optional learning community: https://t.me/GyaanSetuAi