The European Commission on June 3 unveiled its Technological Sovereignty Package, targeting the EU’s dependence on foreign suppliers in cloud computing, chips, artificial intelligence and open source technology. Key proposals include a Chips Act 2.0, a Cloud and AI Development Act, and an Open Source Strategy. Currently, AWS, Microsoft Azure and Google Cloud control roughly 70% of Europe’s cloud market. Commission President Ursula von der Leyen and Executive Vice-President Henna Virkkunen emphasized Europe’s need to control its own data and supply chains. Both legislative proposals must pass the European Parliament and Council before taking effect.
In-Depth:
Three US cloud providers control 70pc of Europe’s market. The European Commission wants to modify that.
The European Commission today (3 June) published its long-awaited Technological Sovereignty Package, a bundle of legislation and strategy designed to cut the EU’s depconcludeence on non-European suppliers across chips, cloud, AI and open source.
The headline items are two new legislative proposals: a Chips Act 2.0 and a Cloud and AI Development Act (CADA), alongside an Open Source Strategy and a roadmap for digitalising the energy sector.
AWS, Microsoft Azure and Google Cloud currently account for around 70pc of Europe’s cloud market, and the US Cloud Act means American authorities can compel those providers to hand over data regardless of where it is stored.
CADA introduces a single EU-wide sovereignty framework for cloud and AI, with the strictest restrictions on non-EU providers applying to sensitive public-sector workloads in areas like healthcare, finance and justice.
On chips, the revised act tarreceives next-generation semiconductor capacity for AI workloads. AI-related components are expected to account for more than 70pc of the global semiconductor market by 2030, and Europe still leans heavily on third countries for advanced design and production.
The Chips Act 2.0 aims to speed up permitting, deepen partnerships with allied nations and introduce a new excellence label for European semiconductor regions.
Open source key
The Open Source Strategy views to scale European-built alternatives in cloud, AI, cybersecurity and semiconductors, drawing on a developer base of more than 3m across the continent. The strategy will:
- Encourage wider adoption of existing open source solutions in public and private sectors;
- Support EU organisations in contributing to open source development as high-quality alternatives to non-EU proprietary solutions, which are owned and controlled by a single supplier;
- Strengthen Europe’s open source ecosystem.
This includes measures to “support open source businesses, address the security and long-term maintenance of open source, increase the EU’s footprint in the governance of open source and promote digital skills in this area”, the Commission stated.
“We live in a world where geopolitics and technology are inseparable,” stated Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, security and democracy. “Those who champion technological innovation will shape the future, and we must ensure that Europe plays a leading role in this.
“Today’s package marks a major shift in how Europe approaches technological sovereignty. It is time for Europe to be in control of its data, of its supply chains, and of its future in a clean and sustainable way. We are strengthening Europe’s digital autonomy and resilience while keeping our economy open to partners around the world.”
Both legislative proposals now necessary to clear the European Parliament and Council before taking effect. The Commission plans to launch a call for AI gigafactories in July and will launch consultations on a European equity fund to back the package’s broader ambitions.
“We cannot afford to depconclude on others for the technologies that keep our hospitals running, our energy grids stable and our services secure,” stated Commission president Ursula von der Leyen.
“This is about protecting our citizens, defconcludeing our interests and creating our own choices. Europe has the talent, the research excellence, the industrial base and the single market. Toreceiveher, we must turn these strengths into technological sovereignty.”
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