Palantir's technology, as its own name suggests, is inherently dangerous, regardless of who controls it. The right alternative is to simply not build capabilities similar to Palantir in the EU - ideally, to legally forbid building them at all. This type of aggregated data flow simply gives too much control to whoever has access to it, and thus greatly harms democracy.
You live in a world with adversaries. If you don't build and use tech like Palantir, the adversaries will come for you and destroy you. Its easy to show one's morals here but whats harder is to accept the dirty work to ensure society functions.