The European Commission is finalizing a package that aims to reduce the bloc’s reliance on American data centers, artificial intelligence, microchips and software.
BRUSSELS — The European Union wants to move away from foreign technology over concerns that overreliance has become a risk in shaky trade ties with Washington.
The European Commission is finalizing a package of measures to boost its so-called technological sovereignty, set to be published on June 3. The package includes proposals to crack down on the bloc’s deep-rooted exposure to foreign technology in areas including cloud, artificial intelligence, microchips, software and data centers.
“As geopolitical fragmentation deepens and supply chains are increasingly weaponized, technological dependencies are becoming strategic liabilities,” the EU executive warned in a draft of the strategy obtained by POLITICO.
POLITICO also obtained an annex to the draft strategy, as well as a draft of the EU’s plan to revise its chips law. It previously obtained a document on energy use of data centers and AI that is also part of the package.
While the plans are subject to change before they are published — and will be accompanied by a separate law governing use of cloud — they so far signal limited ambition in addressing the dominance of American technology head on, instead passing the buck to EU capitals to decide what to do. The plans also rely heavily on funding, both from the private sector and the EU budget, that is yet to be secured.
We break down the four fixes Brussels has in mind to make the bloc less dependent on foreign technology.
EU countries would have to force public administrations to assess whether they are too reliant on foreign cloud, testing digital services against EU sovereignty criteria.
That would seek to make governments across the EU more resilient against a “kill switch” scenario that has dominated concerns over U.S. tech dominance.
While EU capitals won’t be told how to mitigate risks, it would empower governments to check where the vulnerabilities are and procure safer alternatives — potentially sidelining U.S. giants from sensitive public procurement in Europe.
But the Commission would leave it to EU capitals to decide which changes, if any, need to be made, according to two people briefed on the plan — meaning governments can choose to do nothing.
“Strengthening Europe’s technological base and independence in key digital supply chains —especially where other technology powerhouses exist — creates strategic counterweights that enhance Europe’s capacity to remain open to the world, without compromising its interests and values,” the Commission writes in the draft strategy.
Brussels is eyeing new, large-scale microchip projects through its proposed revision of the chips law, obtained by POLITICO. Such projects would get easier access to public support, faster permitting and preferential access to pilot lines.
The law will build on the original Chips Act, adopted in 2023, but shifts the focus toward scaling up industrial capacity, improving crisis preparedness and stimulating demand amid warnings that it doesn’t make economic sense to build new chip factories without generating demand first.
“The recent semiconductor shortages are a stark demonstration of the extent to which supply disruptions tangibly impact Europeans’ lives, affecting the industrial production of cars, healthcare equipment, energy infrastructure and consumer goods across the Union,” the Commission writes.
In its effort to break the U.S.’s dominance, the EU executive also wants to leverage open-source technology — software for which the code is publicly available, making it easier to stay in control of data and systems, switch between providers and avoid being locked into a single vendor.
The Commission would bring more visibility to top European companies, support collaboration between countries to develop and adopt open-source tech and set up a new “maintenance instrument” to beef up the bloc’s capacity to support the upkeep of homegrown solutions — one of the bottlenecks the open-source community is facing.
“This ecosystem is key to boosting Europe’s competitiveness by accelerating innovation, lowering technology costs, reducing dependence on foreign vendors and enabling local companies, researchers and governments to build secure, customizable and globally competitive digital solutions,” the draft strategy document says, stressing that the EU currently spends €264 billion annually mostly on U.S. proprietary solutions.
Boosting the EU’s digital capabilities will come with a price tag. About €200 billion is needed to expand the bloc’s data center capacity by 2036, the Commission estimates in the strategy. Another €2 billion is needed for research and innovation in that space, while €20 billion in public and private funds will be needed to make the plans for digitalization and AI in energy happen.
Brussels is mostly counting on private investors, as well as proposals to make Europe’s digital infrastructure a more attractive place to pour money into.
“The Commission will develop an EU-level promotion initiative targeting streamlined access to information regarding investment needs and readiness, which will be accessible to investors from the EU and third countries alike,” the draft strategy says, citing “semiconductor regions of excellence” and “data center acceleration zones” that the legislative proposal will introduce.
Pieter Haeck contributed reporting.
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