EU tech sovereignty package targets cloud, chips and energy

The European Commission unveiled the Tech Sovereignty Package on 3 June 2026 as a coordinated push to reduce reliance on suppliers outside the EU for chips, cloud infrastructure and AI systems used in critical sectors. The initiative brings together the Cloud and AI Development Act, Chips Act 2.0, EU Open Source Strategy and Strategic Roadmap for Digitalisation and AI in Energy, sitting alongside wider cyber and digital regulation including NIS2, the Cyber Resilience Act and DORA.

CADA would support next-generation cloud and AI research, speed data centre deployment and introduce an EU-wide assurance framework for sovereign cloud and AI services. The framework ranges from Level 1 requirements on where data is stored to Level 4 transparency and control over the software supply chain. Chips Act 2.0 would cap permitting approvals at a maximum of 12 months, use demand accelerators and procurement rules to support European semiconductor production, and create tools such as a Semiconductor Supply Chain Platform to share risk information.

The open source strategy would promote EU-aligned alternatives, procurement guidance, ecosystem development and international standardisation. The energy roadmap links data centres and AI to grid planning, saying demand side flexibility could cut electricity costs by more than €71 billion per year, representing a 64% reduction, while AI based optimisation of operations and maintenance could save up to €94 billion annually by 2035.

The package has been submitted to the European Parliament and the Council of the EU. Germany and France have issued a digital sovereignty joint paper, most Member States welcomed the package, and finalisation is not expected before End 2027.