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European Commission Proposes Technological Sovereignty Package

The plan pairs new cloud‑sovereignty rules, a Chips 2.0 industrial push and data‑centre incentives to reduce EU reliance on US and Chinese technology.

Overview

  • The Commission has published a package that sets four cloud‑sovereignty levels with criteria such as cybersecurity, infrastructure location and supply‑chain origins to limit who can handle highly sensitive public data.
  • A new 'value added in Europe' score in public procurement will favor firms that invest in local R&D or jobs and could effectively rule out non‑EU cloud providers for the most critical contracts.
  • Chips 2.0 proposes expanded support and faster permitting to boost EU semiconductor production after the bloc’s share fell below 9 percent and most suppliers are concentrated in Taiwan, China and East Asia.
  • Brussels aims to triple EU data‑centre storage capacity within five to seven years and designates large data centres as critical infrastructure, estimating about €200 billion of investment will be needed.
  • The measures include an open‑source strategy and an energy‑sector digitalization roadmap, now move into negotiations with the European Parliament and member states, and are expected to raise legal and diplomatic tensions with the United States over data access rules such as the CLOUD Act.