BRUSSELS — The European Union is preparing far-reaching new measures to reduce its dependence on American and Chinese technology companies, with a comprehensive package covering cloud computing, artificial intelligence, and semiconductor sectors expected to be announced in the coming weeks.
The initiative, described in policy discussions as a “Cloud and AI Development Act,” aims to accelerate the deployment of European-controlled data center infrastructure and strengthen the continent’s digital autonomy, according to multiple reports citing EU strategy documents.
Of particular concern is the European market’s heavy reliance on U.S. cloud providers, which currently account for approximately 70 percent of the market. American technology companies dominate across cloud computing, social media, and e-commerce sectors, creating what EU officials describe as structural vulnerabilities.
EU competition commissioner Teresa Ribera has emphasized the need for Europe to develop its own technological capacities, arguing that the bloc cannot afford to allow external actors to influence its decisions, values, and economic functioning. Ribera’s position, as reported by multiple European media outlets, reflects a broader push within the Commission for greater digital sovereignty.
The proposed legislation would require governments to conduct “sovereignty risk assessments” for cloud and AI services to identify European alternatives and improve resilience. For highly sensitive sectors such as defense and healthcare, stricter requirements would mandate that data remain within European-controlled environments not accessible to foreign governments.
A separate “Chips Act” proposal aims to reinforce supply chain security for semiconductors by reducing dependence on foreign providers. The Commission is also seeking powers to intervene in crisis situations by requiring manufacturers to prioritize orders for critical products.
Public authorities would also be encouraged to use more open-source software solutions to gain greater control and flexibility while avoiding vendor lock-in.
U.S. technology industry groups have pushed back against the measures. A senior U.S. diplomatic representative to the EU was quoted in recent media reports as cautioning that Europe would not advance its AI economy by constraining foreign participants. American companies have emphasized their existing investments in European infrastructure, with major U.S. cloud providers committing tens of billions of dollars in European data center and AI infrastructure development, according to company announcements and government filings.
The package is expected to be formally presented during the first half of 2026, though EU official documents have not specified an exact publication date. Internal debate among member states continues over how far restrictions should extend, with some officials favoring stronger “Buy European” policies for strategic sectors while others prefer a rules-based approach that imposes strict standards without directly excluding non-European companies.