The European Commission has introduced a sweeping Tech Sovereignty Package aimed at reducing Europe’s reliance on foreign technology providers and strengthening domestic capabilities across cloud computing, artificial intelligence, semiconductors, software, and digital infrastructure.
The package combines two legislative proposals — the Cloud and AI Development Act (CADA) and Chips Act 2.0 — with an EU Open Source Strategy and a Strategic Roadmap for Digitalization and AI in Energy.
At the center of the initiative is CADA, which seeks to significantly expand Europe’s cloud and AI infrastructure. The proposal aims to triple EU data center capacity within five to seven years and support the development of frontier, industrial, and public-sector AI applications. It also introduces a Cloud Sovereignty Framework that categorizes cloud services based on factors such as infrastructure control, data handling, and cybersecurity requirements.
The proposed Chips Act 2.0 builds on the EU’s semiconductor strategy by combining supply- and demand-side measures. The legislation would support strategic semiconductor projects, accelerate permitting, encourage adoption of European-made chips, and strengthen the region’s preparedness against supply chain disruptions. The Commission is also exploring the creation of an advanced semiconductor manufacturing facility capable of producing AI-focused chips in the next decade.
A third pillar, the EU Open Source Strategy, positions open-source technology as a key tool for digital sovereignty. The strategy promotes interoperable digital ecosystems, seeks to reduce vendor lock-in, and encourages greater adoption of open-source solutions across both public and private sectors. It also supports an “open source-first” approach for public procurement of cloud and AI software.
The package’s energy-focused roadmap links AI adoption with the EU’s climate and sustainability goals. Planned measures include a data center energy efficiency framework, sustainability ratings for data centers, and the use of AI to optimize power grids, electrification, and energy management systems.