Europe unveils tech sovereignty plan amid U.S. tech reliance concerns

EU chips, AI and cloud rules aim to cut U.S. and China dependence. See how the new plan could boost security, capacity and sovereignty.

The European Commission on Wednesday proposed a package of measures aimed at strengthening Europe’s own chips, artificial intelligence and cloud services as policymakers seek to reduce dependence on U.S. and Chinese technology. The plan includes a Cloud and AI Development Act and a new Chips Act 2.0. According to the Commission, the cloud rules are intended to lower risks tied to reliance on providers outside the EU and to establish different sovereignty levels for sensitive publicsector workloads. Commission officials said the bloc wants to keep its most critical data in Europe and avoid situations where external providers could effectively cut off access. The semiconductor proposal is designed to expand Europe’s manufacturing capacity, improve crisis preparedness and support advanced chip technologies used in AI.