EU launches sweeping tech sovereignty package

TL;DR:

  • The EU’s Technological Sovereignty Package combines a Chips Act 2.0, a Cloud and AI Development Act and an open-source strategy.
  • It aims to triple European data-centre capacity and cut reliance on non-EU providers, who supply over 80% of the bloc’s digital products.
  • The plan introduces a four-level framework to assess cloud and AI “sovereignty”.

The European Commission has unveiled an ambitious bid to reclaim control of its digital backbone. Announced on 2 June, the Technological Sovereignty Package brings together two legislative proposals — the Chips Act 2.0 and the Cloud and AI Development Act — alongside an open-source strategy and a roadmap for AI in energy. The Commission says Europe remains structurally dependent on non-EU providers for more than 80% of its digital products, produces only around 10% of the world’s semiconductors, and lets three US hyperscalers hold over 70% of its cloud market. “We cannot afford to depend on others for the technologies that keep our hospitals running,” said Commission President Ursula von der Leyen.

Sovereignty moves into procurement

The package would triple EU data-centre capacity within five to seven years and create a single framework to assess cloud and AI sovereignty across four assurance levels — weighing control over the supply chain, where AI inference data is processed, and the location of infrastructure and staff. The Chips Act 2.0 backs an EU-based open foundry targeting 3-nanometre-and-below production, with pilot output envisaged between 2030 and 2033. Open source is recast as a “sovereignty lever” to reduce vendor lock-in. The sums are large: roughly €200bn (about £173bn) is estimated for data-centre expansion by 2036, plus €100bn (around £87bn) for cloud and AI leadership.

For UK readers, the package sharpens a post-Brexit question: where does Britain sit as its largest neighbour hard-wires sovereignty into procurement rules? The move runs in parallel with Canada’s new strategy to lead “middle powers”, which names the UK as an ally — leaving Britain courted by both blocs yet bound to neither’s framework.

Looking forward

If the assurance levels take hold, UK cloud and software vendors serving European clients may need to prove jurisdictional control over data and AI services. The package signals that “sovereignty” is shifting from political rhetoric into the technical criteria by which platforms are chosen.

Share this article