The European Commission has presented a “Technological Sovereignty Package” aimed at reducing the EU’s reliance on non-EU suppliers for key digital technologies, including semiconductors, artificial intelligence (AI), cloud services and open source software. The package combines two proposed laws, Chips Act 2.0 and the Cloud and AI Development Act along with an updated Open Source Strategy and a roadmap for digitalisation and AI in the energy sector.
According to a press release, the new proposals aim to speed up permitting for chip projects, expand cooperation with partner countries, and introduce a “quality label” for semiconductor regions. These proposals also seek to strengthen links between chip manufacturers and sectors driving demand, including data centers and AI infrastructure. The measures are intended to expand Europe’s domestic capacity in critical technologies and increase adoption of AI across industry and government, while managing rising demand for computing infrastructure.
On semiconductors, the Chips Act 2.0 builds on the 2023 Chips Act, which was the EU’s first major response to supply chain risks as The Commission says Europe still depends heavily on external suppliers for advanced chip design and production. It estimates AI-related components will account for more than 70% of the semiconductor market by 2030.
On cloud and AI infrastructure, the Cloud and AI Development Act is part of the EU’s broader AI Continent Action Plan. It sets a target to triple data center capacity in Europe over the next five to seven years.
Numerous key authority leaders expressed their concerns about how the EU’s digital infrastructure can remain stable as geopolitical and technological developments are intertwined in the modern era and determine the future for business strategies, supply chains and power sources. They also voice their optimism for the deployment of the Technological Sovereignty Package.
Ursula von der Leyen, Commission President, said, “We cannot afford to depend on others for the technologies that keep our hospitals running, our energy grids stable and our services secure, together we must turn these strengths into technological sovereignty.”
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said, “Today’s package marks a major shift in how Europe approaches technological sovereignty. It is time for Europe to be in control of its data, of its supply chains, and of its future in a clean and sustainable way. We are strengthening Europe’s digital autonomy and resilience while keeping our economy open to partners around the world.”
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said, “Digitalisation of the energy system is Europe’s chance to get more from the same infrastructure we have and reduce bills for consumers. This package seizes that chance and ensures surging demand from data centers works with the grid, not against it, so Europe’s digital ambition powers the energy transition rather than competing with it.”
Dan Jørgensen, Commissioner for Energy and Housing, said, “These technologies are transforming how we live, work, and power our economies. Europe must not simply participate in this transformation, it must lead it. But leadership means doing so in a way that reflects our values: responsibly, sustainably, and for the benefit of all consumers and sectors. Our task is clear: to manage the growing energy demands of digitalisation.”
The Commission also plans to streamline rules for building data centers, encourage more sustainable facilities, and create a single EU framework for assessing cloud and AI “sovereignty” risks while keeping markets open to allied countries. It says the goal is to support deployment of AI systems and protect sensitive data and critical applications.
The Open Source Strategy focuses on scaling European open-source software in areas such as cloud computing, AI, cybersecurity and semiconductors. It also proposes increased funding for skills, start-ups and long-term maintenance of open-source infrastructure, as well as greater use of open source in public administration procurement.
The energy roadmap addresses the impact of rising digital infrastructure on electricity demand, particularly from data centers. It proposes closer coordination between the energy and digital sectors to ensure grid capacity and clean energy supply can support expansion.
The Commission also says it will promote smart energy systems using AI, accelerate deployment of smart meters, and support cross-border energy data sharing to improve efficiency and reduce costs. It adds that AI models for the energy sector should be developed in Europe using European data.
Before adoption, the proposals will be negotiated by the European Parliament and EU member states. The Commission also said it will launch a call for AI Gigafactories in July and consult with the European Investment Bank and other stakeholders on financing mechanisms for technology sovereignty. The package builds on the EU’s AI Continent Action Plan and existing competitiveness and economic security strategies.