NewsBite analysis · AI, Cloud, RegulationThe Economic Times

EU to unveil plan to wean itself off US, Asia tech

The European Union is set to present a comprehensive 'technological sovereignty' package designed to reduce reliance on US and Asian technology by strengthening European capabilities in cloud computing, artificial intelligence, and semiconductor manufacturing. Key elements include a new cloud computing and AI law intended to expand EU data-centre capacity over the next five to seven years, a chips law to bolster European semiconductor production, and a push for open-source software in the public sector to avoid vendor lock-in. The plan also proposes a common EU scheme to rate data-centre sustainability and requires sovereignty risk assessments for cloud and AI contracts. Brussels cites over 80% reliance on foreign providers for digital goods and services and emphasizes that goals are to empower European providers and governance, not to exclude foreign players. While designed to increase Europe’s strategic autonomy, the measures may provoke pushback from the United States and could introduce regulatory and cost considerations for multinational tech firms operating in the EU. The package aligns with broader efforts to localize critical digital infrastructure and data, diversify supply chains, and accelerate Europe’s AI race, with significant implications for procurement, investment, and competitive dynamics in cloud computing and semiconductors.