Brussels, Belgium. The European Commission on 3 June unveiled a package of measures aimed at strengthening the European Union’s technological sovereignty and reducing reliance on foreign digital infrastructure. The proposals cover cloud computing, artificial intelligence, semiconductors and open-source software.
Cloud and AI framework
After months of delays, the Commission presented what amounts to a more interventionist industrial policy designed to build domestic technological capacity. The strategy reflects growing concern in Brussels that Europe’s dependence on foreign digital infrastructure has become both an economic weakness and a strategic vulnerability.
The package comes amid increasingly uncertain transatlantic relations and concern that Europe’s digital economy relies heavily on infrastructure controlled by a small number of US companies. EU policymakers, who have previously pursued greater autonomy in areas such as energy and defence, are increasingly applying the same approach to digital technologies.
At the centre of the package is the proposed Cloud and AI Development Act, or CADA. The measure would create a tiered sovereignty framework classifying cloud services according to how independent they are from foreign ownership and legal jurisdiction.
Under the proposal, the highest sovereignty classifications would be reserved for providers not controlled by non-EU governments or companies. Public procurement rules would also make it more difficult for non-European cloud providers, including Amazon Web Services, Google Cloud and Microsoft Azure, to compete for sensitive public-sector contracts.
Use of public procurement
The proposal is one of the clearest indications that Brussels is prepared to use procurement policy to support a domestic cloud industry. Supporters say public purchasing power could help create demand for European providers that have struggled to compete with larger US hyperscalers that benefit from greater economies of scale.
“While the proposed tiered sovereignty framework gives buyers a clearer basis on their preferred European providers,” Samuel Goodger, AI Policy Analyst at the European Policy Centre, told en.philenews. “Its effect in practice will depend on how strictly the criteria are enforced, and on whether contracting authorities have the capacity to hold suppliers to them,” he added.
Semiconductors and open-source software
Alongside cloud infrastructure, the Commission proposed a second-generation Chips Act intended to expand Europe’s semiconductor industry. The initiative aims to double the EU’s share of global semiconductor production to 20 per cent, reduce project approval times to no more than 12 months, and establish mechanisms to better connect European chip manufacturers with industrial customers.
The package also identifies open-source software as a strategic asset rather than only a development model. According to Brussels, wider adoption of open-source technologies can reduce dependence on proprietary foreign software while helping provide a foundation for European alternatives in cloud computing and artificial intelligence.
The strategy also links digital sovereignty to the EU’s climate agenda by encouraging the deployment of AI and digital technologies across the energy sector. The Commission presents these tools as a means to improve infrastructure resilience and support decarbonisation.
Shift in policy approach
Taken together, the measures show how Brussels’ understanding of technological competitiveness has evolved. Earlier initiatives, including the AI Act and the original European Chips Act, were focused mainly on regulation or supply-side investment.
The new package places greater emphasis on generating domestic demand and using public procurement to shape markets. The approach reflects a broader “Made in Europe” strategy aimed at strengthening industrial capacity alongside technological innovation.
Several developments have reinforced the Commission’s position. The rapid emergence of generative AI has concentrated computing power, cloud infrastructure and advanced AI models within a small group of mainly US technology companies, including Microsoft, Amazon, Google and Meta.
At the same time, geopolitical tensions, supply-chain disruptions and concerns over foreign jurisdiction over European data have increased anxiety over the concentration of digital infrastructure outside EU control.