newsJun 3, 20263 mins

The European Union has now published a set of measures aimed at boosting Europe’s tech industry to help reduce reliance on US and Chinese suppliers for AI, cloud, and semiconductors. The proposals include rules to restrict the use of US hyperscalers for certain public sector procurement purposes, but stop short of banning them outright.

“Technological sovereignty does not mean protectionism. Europe remains grounded in openness, partnership, and fair competition,” Henna Virkkunen, executive vice president for Tech Sovereignty, Security and Democracy, said in a statement Wednesday. “At the same time, Europe wants to be in the position to make its own choices, avoiding dependence on single dominant suppliers, especially from non-like-minded countries.”

The European Technological Sovereignty Package — released after several delays — includes two legislative proposals: the Cloud and AI Development Act and Chips Act (CAIDA) 2.0 and the Open Source Strategy and Strategic Roadmap for Digitalization and AI in Energy.

CAIDA aims to triple data center capacity in the next five to seven years by easing restrictions for deployments across the EU. It also includes rules that, if enacted, would require EU public bodies to meet certain sovereignty criteria for cloud service procurement related to certain sensitive workloads.