EU cloud sovereignty push raises fragmentation concerns

The EU is accelerating efforts to reduce reliance on foreign cloud, AI, and semiconductor suppliers, framing the push around concerns over so-called “kill switch” risks. The strategy is aimed at strengthening technology sovereignty in areas viewed as critical to digital infrastructure and industrial competitiveness.

Planned measures include the Cloud and AI Development Act (CADA) and a Chips Act 2.0. The initiative is also drawing warnings about fragmentation, underscoring concerns that a stronger sovereignty agenda could complicate technology markets and supplier relationships as Europe seeks greater control over cloud services, AI capabilities, and semiconductor access.