The European Union plans to launch sweeping support for European companies in advanced technology sectors including semiconductors, cloud computing and artificial intelligence (AI). The move is seen as an effort to reduce reliance on US technology while bolstering Europe's own technological capabilities, in what is being called a push to strengthen tech sovereignty.
According to the Financial Times on Thursday (local time), the EU recently drafted a "European tech sovereignty strategy." The plan includes various incentives to promote the construction of data centers within Europe, along with measures to give preferential treatment to European-made cloud and AI technologies. The EU is expected to officially unveil the strategy next week, although details may change. The EU stressed that "Europe must reclaim its position in the global competition over geopolitical economic power," adding that now is "a decisive moment to clearly assert Europe's tech sovereignty."
At the heart of the policy is the "Cloud and AI Development Act." The bill focuses on accelerating Europe's data center build-out by simplifying procedures and standardizing regulations related to data centers. Through this, the EU plans to expand its data center capacity to three times the current level within the next five to seven years. Fostering sovereign cloud and AI services has also been set as a key goal.
The EU is also preparing a second revision of the Chips Act to strengthen its semiconductor production base within the bloc. The plan envisions linking suppliers with corporate buyers through long-term purchase contracts and expanding intra-bloc demand for EU-made semiconductors. The push is seen as a response to supply chain concerns and chip shortages that emerged following Chinese firm Wingtech's acquisition of Dutch semiconductor company Nexperia.
The EU is moving forward with such measures because a sense of crisis over US technology dependence is spreading rapidly across Europe. In particular, with the possibility of cracks in the transatlantic alliance being raised, concerns are growing among European companies and policymakers that US President Donald Trump cannot be ruled out from restricting or cutting off access to key technology services.
The strategy also signals a shift in Europe's approach toward US Big Tech, observers say. While the focus has previously been on tightening regulations on Silicon Valley firms, the emphasis is now shifting toward nurturing Europe's own technology ecosystem.
The FT analyzed that "the policy could benefit existing European tech companies such as German software firm SAP, French AI startup Mistral AI and French cloud company OVHcloud."
