BRUSSELS, June 3 — The European Union on Wednesday unveiled an ambitious legislative push designed to reduce its reliance on U.S. technology giants, introducing new rules aimed at strengthening domestic capabilities in cloud computing, artificial intelligence, and semiconductor manufacturing.

 

The proposals, known as the Cloud and AI Development Act and the updated Chips Act 2.0, form the backbone of a broader strategy to reinforce Europe’s so-called “technological sovereignty” as global competition intensifies between the United States, China, and Europe.

 

Under the plan, the European Commission aims to double the bloc’s global semiconductor market share to 20% by 2030, a target that would require significant expansion of manufacturing capacity and supply chain control within the region.

 

“We cannot afford to depend on others for the technologies that keep our hospitals running, our energy grids stable and our services secure,” European Commission President Ursula von der Leyen said in a statement.

 

At the heart of the initiative is growing concern in Brussels over the dominance of U.S. hyperscalers—particularly Amazon, Microsoft, and Google—which collectively control more than 60% of the global cloud computing market.

 

EU officials argue that such concentration creates strategic vulnerabilities, especially in critical sectors such as healthcare, energy, banking, and defence.

 

Henna Virkkunen, the EU’s tech commissioner, warned that Europe must guard against potential external control mechanisms that could disrupt services in sensitive infrastructure.

 

“We want to be sure that in the critical fields we are always able to control the services and control the data in Europe,” she told reporters, referring to concerns about remote access laws and foreign jurisdiction over data stored on European soil.

 

One of the most contentious elements of the proposal is the introduction of sovereignty requirements for cloud providers operating in sensitive sectors. 

 

These rules would push governments and regulated industries to favour providers that guarantee EU-based control over data and infrastructure.

 

The Commission also signalled that, for certain critical public contracts, hardware and software may need to be manufactured within the European Union, effectively limiting access for non-European suppliers in areas deemed strategically sensitive.

 

Officials said this would apply particularly in defence-related systems and other national security-linked infrastructure, where control over data and service continuity is considered essential.

 

The proposals also include a fast-track approval system for data centre construction, coupled with incentives such as preferential access to electricity grids and reduced network charges for facilities using energy-efficient, EU-made semiconductor components.

 

The updated Chips Act seeks to encourage long-term purchasing agreements between chipmakers and buyers, a move designed to stabilize demand and attract greater investment into European fabrication capacity.

 

Analysts say the initiative reflects growing anxiety in Europe over technological dependency, particularly following the rapid expansion of U.S. cloud and AI infrastructure across the continent.

 

However, the plan is expected to face resistance from both industry stakeholders and EU member states, many of whom remain heavily reliant on U.S. providers for digital infrastructure and fear potential cost increases or retaliation in trade relations.

 

The proposals will now undergo negotiations with member states and the European Parliament before any measures can be enacted into law, a process that could take months or even years.

 

If adopted, the legislation would mark one of the most significant shifts in Europe’s digital industrial policy in decades, signalling a more assertive approach to technology governance and global competition.