The European Commission has presented the European Technological Sovereignty Package, a comprehensive set of measures intended to reduce the European Union’s structural dependencies on foreign suppliers and strengthen its digital infrastructure in semiconductors, artificial intelligence (AI), cloud computing, and open-source technology.
In their announcement, they share that the package centers on two legislative proposals: the Chips Act 2.0 and the Cloud and AI Development Act. The Chips Act 2.0 builds upon existing 2023 legislation by introducing streamlined permitting and funding mechanisms to expand domestic production of cutting-edge semiconductors, which are projected to make up the majority of the chip market by 2030 due to AI demand. Concurrently, the Cloud and AI Development Act establishes a framework to triple Europe’s data center capacity over the next five to seven years while aligning this expansion with the EU’s climate and sustainability targets.
To support these infrastructure goals, the package includes a Strategic Roadmap for Digitalisation and AI in Energy, which outlines plans for integrating energy-intensive data centers into the electricity grid without compromising resources. The initiative also features an Open Source Strategy designed to scale up European-made software alternatives for public administrations and businesses, leveraging the region’s existing ecosystem of open-source contributors.
Financing mechanisms for the package are currently being organized and the Commission announced it will initiate consultations with Member States and the European Investment Bank Group to establish a large-scale European equity capacity, alongside a planned call for AI Gigafactories in July. The legislative components of the package will now move to the European Parliament and the Council of the European Union for negotiation and potential adoption.
