The European Union will reveal a comprehensive package on June 3, 2026, to sharply reduce its reliance on US and Asian technology providers and promote European digital alternatives. The plan, to be unveiled in Brussels by EU tech chief Henna Virkkunen, focuses on semiconductors, cloud computing, and artificial intelligence regulation [1, 2].
Currently, the EU imports over 80% of its digital products, services, infrastructure, and intellectual property from foreign providers, according to a 2023 report. The bloc spends roughly €264 billion annually on US cloud software alone, with platforms like Microsoft Azure, Amazon Web Services, and Google Cloud controlling 70% of the EU cloud market [1, 2].
The proposed measures include requirements for sovereignty criteria in public contracts related to cloud and AI. Governments will be mandated to perform assessments of sovereignty risks, aiming to ensure more control over critical digital infrastructure [2].
To promote European alternatives, the plan calls for boosting demand for homegrown semiconductors and increasing the use of open-source software in the public sector. The EU also intends to establish a sustainability rating system for data centers and encourage the construction of data centers within its member states. The goal is to triple the EU’s data center capacity in the next five to seven years through new cloud computing and AI legislation [1].
The timing follows crises involving chip supply and rare earth materials with China in 2025, which exposed vulnerabilities in the EU’s tech supply chains. Another driver is concern about data security, especially amid the US Cloud Act that allows US authorities access to data from US companies regardless of storage location. Fears persist that a US administration could cut off cloud services to the EU, described as a "kill switch," prompting calls for technological sovereignty [1, 2].
While the plan aims to reduce foreign dependency, EU officials stress it is not designed to exclude non-European providers. Instead, the effort seeks to strengthen the EU’s own tech industry and maintain competitiveness in the global AI race [1, 2].
The package will be presented by Henna Virkkunen in Brussels on June 3, setting in motion shifts in procurement rules, infrastructure investment, and regulation to secure European digital autonomy [1, 2].
