The European Union is developing a new package of measures aimed at achieving technological sovereignty — reducing its reliance on American cloud services and Chinese-made chips, while building homegrown capacity in cloud computing, artificial intelligence, and semiconductors.
In Brussels, concern has been growing that Europe’s core digital infrastructure is far too dependent on foreign companies and on political decisions made well beyond the EU’s borders. The package is expected to be formally presented this week and will cover three key areas: cloud services, artificial intelligence, and the semiconductor supply chain.
The Cloud Problem
One of the most pressing concerns is cloud infrastructure. American companies currently control around 70 percent of the European cloud services market — a dominance that has prompted uncomfortable questions in Brussels about what would happen if political tensions with Washington were to escalate. European officials have increasingly been raising the spectre of an American “kill switch” — the theoretical ability of US authorities to cut off access to cloud platforms at a moment of geopolitical crisis. The American tech industry firmly denies that any such mechanism exists, but the fear itself is enough to drive policy.
Brussels Wants Its Own Cloud, Chips, and AI Infrastructure
According to a draft strategy seen by AFP, the EU wants to reclaim its place in the global race for geo-economic power. The measures under consideration include expanding European data centre capacity, strengthening semiconductor supply chains, and promoting the wider use of open-source solutions in the public sector — a move that would reduce dependence on proprietary software from foreign vendors. The underlying ambition is clear: Europe wants to own more of the digital stack that its economies and governments run on.
The Risk of a New Confrontation with Washington
European officials have been careful not to name the United States explicitly as a target, but the reality is that American technology dominates almost every layer of Europe’s digital life — cloud services, social networks, e-commerce, and much of the underlying infrastructure. EU Competition Commissioner Teresa Ribera has stated plainly that Europe must develop its own capabilities and cannot allow any external actor to influence its decisions, values, or economy.
From Washington, the pushback has already begun. The US representative to the EU, Andrew Puzder, warned that Europe risks cutting itself off from the artificial intelligence economy if it creates barriers to foreign technology. The message is clear: what Brussels frames as sovereignty, Washington sees as protectionism.
Emergency Powers Over Chip Production
One of the most politically sensitive elements of the package concerns semiconductors. The draft document indicates that the European Commission is seeking the authority to intervene in crisis situations — compelling manufacturers to prioritize orders for goods deemed critical, even if that means overriding existing commercial contracts. A joint procurement mechanism is also being considered, under which the EU would act as a central buyer for member states facing serious chip shortages.
A Question of Security not merely Markets
The bigger story from Brussels is that digital sovereignty is no longer a question of mere markets but is a question of security, control and political autonomy. Covid highlighted the risks of reliance on foreign supply chains of physical products, while the conflict in Ukraine has once again shown how quickly political currents can pull apart seemingly secure friendships. Europe does not want to find itself equally exposed in the digital sphere.
The challenge, however, is navigating this shift without triggering a trade war with the United States at a time when transatlantic relations are already under strain. Europe wants to be less vulnerable — but the path to that goal may open yet another fault line with Washington.
