The 27-nation European Union outlined
how it hopes to expand the region’s data centers,
semiconductors and cloud computing capabilities.
·
The
European Union has unveiled a comprehensive plan to reduce reliance on American
technology.
·
The
initiative aims to strengthen Europe's economic security and technological
independence.
·
European
leaders fear excessive dependence on U.S. firms in:
o Artificial Intelligence (AI)
o Cloud Computing
o Semiconductors
·
Some
policymakers worry that future U.S. administrations could potentially restrict
access to critical digital services.
·
The
package calls for increased government involvement to:
o Accelerate data center
construction.
o Revive Europe's semiconductor industry.
o Support domestic technology providers.
·
Governments
and businesses will be encouraged to procure technology from European
companies.
·
Certain
sensitive cloud-computing contracts may be restricted to European providers.
·
The
plan could create tensions with the United States, particularly the Trump
administration.
·
Previous
disagreements have already emerged over trade, digital regulations, Ukraine,
and Greenland.
·
The
technology package has been criticized by industry groups as discriminatory
against non-European companies.
·
Critics
argue it could limit customer choice and reduce access to global technology
solutions.
·
Europe
faces pressure from:
o U.S. dominance in advanced technology.
o China's strength in manufacturing and
industrial exports.
·
The EU
recorded a trade deficit of about €145 billion with China in the first quarter
of 2026.
·
The
European Commission estimates that over 80% of the bloc's digital products,
services, infrastructure, and intellectual property originate outside Europe.
·
The
cloud market is dominated by Amazon, Google, and Microsoft.
·
A
major component of the package is the Cloud
and AI Development Act.
·
Key
proposals include:
o Restrictions on non-European providers for
certain government and public-sector contracts.
o Faster approvals for data-center projects.
o Public investment support.
o A target to triple EU data-center capacity by 2030.
·
The
proposed Chips Act 2.0
seeks to:
o Increase semiconductor demand within
Europe.
o Strengthen supply chains for industries
such as automotive and defense.
o Build upon the semiconductor initiatives
launched in 2023.
·
The
initiative is expected to benefit European firms including:
o SAP (Germany)
o Mistral
AI
(France)
o OVHcloud (France)
·
The
European Commission is considering:
o Direct investment funds for strategic
technologies.
o Easier regulations for technology
development.
o Support for advanced manufacturing and
semiconductor projects.
·
The
European Parliament has announced plans to switch from Google Search to the
French search engine Qwant.
·
The
European Parliament is expected to vote on the package in mid-June 2026.
·
Several
provisions could take more than a year to become law after negotiations among
EU member states and lawmakers.
The
EU's technology sovereignty package represents a major strategic shift toward
building domestic digital capabilities, reducing dependence on U.S. technology
providers, and strengthening Europe's position in AI, cloud computing,
semiconductors, and critical digital infrastructure. The initiative could
reshape global technology competition and further influence transatlantic trade
relations.
[ABS News Service/05.06.2026]
European
Union officials unveiled a broad plan on Wednesday (03.06.2026) to reduce
dependence on American technology, which they increasingly see as a threat to
the region’s economic future and geopolitical security amid a rocky
relationship with the Trump administration.
Under
the plan, officials outlined more government involvement in the region’s tech
industry to accelerate the construction of data centers
and revive its semiconductor industry. It would also push European governments
and businesses to purchase technology from domestic suppliers, while
potentially barring American firms from cloud computing contracts seen as
critical to security.
European
leaders have become increasingly alarmed by the reliance on American technology
in areas like artificial intelligence, cloud computing and semiconductors. Many
worry the dependence creates a “kill switch” that the Trump administration or
future U.S. presidents could exploit to block access to essential tech
services.
“We
cannot afford to depend on others for the technologies that keep our hospitals
running, our energy grids stable and our services secure,” said Ursula von der
Leyen, the president of the European Commission, the executive branch of the
27-nation bloc, in a statement.
By
adopting more protectionist economic policies, the so-called technology
sovereignty package could further strain Europe’s relationship with the Trump
administration after past disagreements over trade, the war in Ukraine and
control of Greenland. Jamieson Greer, the U.S. trade representative, previously
threatened retaliation against Europe over its digital policies.
European
officials are working to carry out a trade pact with the United States, and
President Trump has told them they must finish by July 4. The European
Parliament is expected to vote on the package in mid-June, just ahead of that
deadline.
The
Computer and Communications Industry Association, an industry trade group,
called the tech package “discriminatory” against companies based outside
Europe.
“By
excluding trusted international technology providers based on their
headquarters location and organizational structure, the commission forces users
to rely on a much more limited selection of digital products,” the group said
in statement.
The
tech package is part of a wider strategy shift to drive economic growth. Europe
has been squeezed between the United States’ dominance in technology and
China’s strength in manufacturing. The European Union ran a trade deficit with
China of about 145 billion euros in the first three months of this year, worth
about $170 billion, driven in part by an influx of Chinese-made machinery and
electric vehicles.
The
European Commission said the bloc relied on foreign providers for over 80
percent of its digital products, services, infrastructure and intellectual
property. The American companies Amazon, Google and Microsoft dominate the
European cloud computing market. Semiconductors and other vital components
primarily come from companies based in the United States and Asia. European
companies have also struggled to get a foothold in the fast-growing A.I.
market, which is led by Anthropic and OpenAI of Silicon Valley.
After
more than a decade of aggressively regulating Apple, Google, Meta and others,
many European leaders now want to develop a bigger tech ecosystem to compete
with those U.S. giants.
“The
European Union stands at a defining moment to assert its technological
sovereignty and reclaim its place in the global race for geoeconomic power,”
the European Commission said in the proposal.
Many
parts of the new tech package could take a year or more to become law. The
proposals must wind their way through a lawmaking process that requires
agreement on a deal by European countries and the 720-member European
Parliament.
A
major focus of the E.U. initiative, called the Cloud and A.I. Development Act,
is boosting European cloud computing companies. For some tasks handling
sensitive government work and public data, non-European providers would be
limited from winning contracts.
The
draft bill also encourages construction of data centers
by speeding up permits, providing reliable electricity and investing government
funds. The European Union says it wants to at least triple its data center capacity by 2030.
Another
piece of the package, the Chips Act 2.0, attempts to increase demand for
semiconductors among European businesses, including automobile and defense firms. The proposal builds on a 2023 law aimed at
bolstering chip manufacturing.
European
officials said the tech plan was not about replacing American technology, but
about building resiliency so governments and companies in the region were not
reliant on one foreign supplier. The policies are expected to benefit European
companies, including the business software giant SAP of Germany, the artificial
intelligence company Mistral of France and the cloud computing firm OVHcloud of France.
Officials
in Brussels have already eased other regulations to encourage tech development,
including delaying some rules related to A.I. The European Commission also
might create a fund to invest directly in domestic businesses — including
semiconductors and advanced manufacturing — in exchange for ownership stakes.
Countries like France have adopted policies to build data centers
by promising access to affordable nuclear energy.
Some
government bodies are already making the switch from American tech. On
Wednesday, the European Parliament said it would move to the French search
engine Qwant from Google.