European Commission proposes cloud and AI infrastructure act

The European Commission proposed the Cloud and AI Development Act on July 2, 2026, aiming to expand Europe’s cloud and data center capacity and support the infrastructure behind the EU’s wider AI goals. The initiative is part of the AI Continent Action Plan, which is intended to help Europe become a “leading AI continent” and encourage large-scale investment in cloud and edge capacity across the EU.

The Action Plan focuses on expanding AI computing capacity, improving access to high-quality data, strengthening AI skills and supporting implementation of the EU AI Act. The proposed Act would address obstacles such as lengthy permitting processes, site constraints and energy access challenges, with the goal to triple the EU’s data center capacity within the next five to seven years so it can better serve EU businesses and public administrations by 2035.

Projects meeting resource efficiency and innovation requirements could receive simplified permitting and other public support, while environmental and public health protections remain in place. The proposal also seeks secure EU-based cloud capacity for critical use cases and may support a common EU marketplace for cloud capacity and services. A public consultation runs from July 2, 2026, to August 27, 2026.