European Commission launches sovereign technology strategy

The European Commission has launched a new European Technological Sovereignty Package to reduce its reliance on US tech companies by backing domestic alternatives in artificial intelligence (AI), cloud computing, and semiconductors. As part of this initiative, the Commission has adopted a proposal for the Cloud and AI Development Act (CADA) to strengthen EU infrastructure, investment, and the AI ecosystem.

The proposed legislation aims to expand cloud and data centre capacity to support the wider AI rollout for European researchers and businesses. It will also reinforce efforts to ensure data centres are energy-efficient while boosting technology adoption across Europe.

CADA focuses on three core objectives: 

• Support research and innovation in cutting-edge, sustainable cloud and AI technologies. 
• Accelerate data centre deployment across the EU, prioritising facilities that enhance essential public sector functions. 
• Introduce a single EU-wide assessment framework for cloud and AI sovereignty, along with a public-sector adoption mechanism.

Reporting on the draft strategy ahead of its announcement last week, the Financial Times (£) said the move marks a shift from regulating Silicon Valley to promoting homegrown companies like SAP, Mistral, and OVHcloud, driven by fears that transatlantic tensions could lead to restricted access to critical US service providers. Currently, Amazon, Microsoft, and Google dominate over 70% of the EU cloud market. 

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