EU cloud proposal targets capacity and digital sovereignty

The European Commission’s proposed Cloud and AI Development Act aims to strengthen Europe’s digital infrastructure, competitiveness and technological autonomy. Part of the AI Continent Action Plan, it addresses lengthy permitting procedures, constrained access to resources and financing, and dependence on non-EU cloud providers.

The proposal sets a goal of at least tripling the EU’s data centre capacity within the next 5-7 years. It would accelerate permitting and improve access to energy, land, water and financing. Research support would focus on frontier AI, industrial AI and physical AI, with adoption encouraged through national strategies and Experience and Acceleration Centres for AI.

A common EU-level procurement framework would help public administrations combine purchasing power. The initiative also promotes open source solutions and contributions to EU-based innovation and supply chain resilience. It seeks faster deployment in critical sectors while keeping the vast majority of the market open to international partners.

The proposed sovereignty framework comprises four assurance levels for public bodies to use according to risk assessments, with providers recognised by Member States following an audit. Level 1 requires EU-based data processing and storage. Level 2 adds independence from third countries and software supply chain transparency. Level 3 requires EU ownership and control, with additional criteria and scope for Commission recognition of third-country providers. Level 4 requires full software supply chain transparency and control, without third-country interference.