European Union launches tech sovereignty initiative to boost chips, cloud and AI at home

BRUSSELS (AP) — European Union leaders, worried about the continent relying too heavily on American companies for AI and cloud computing services and Asia for microchips, are pushing back.

The 27-nation bloc unveiled a “tech sovereignty” package on Wednesday with measures to promote homegrown European alternatives to Big Tech services and hardware.

The efforts by Brussels have gained urgency as leaders worry about dependence on technologies from foreign providers, which they say could be “weaponized” against Europeans. Those fears crystallized after the International Criminal Court’s top prosecutor was sanctioned by the Trump administration, which led to Microsoft canceling his email account, sparking fears of a “kill switch” hidden in U.S. tech services.

“Europe wants to be in the position to make its own choices, avoiding risky dependencies on single dominant suppliers, one company or one third country,” European Commission Executive Vice-President Henna Virkkunen, who oversees tech sovereignty, told reporters in Brussels.

“Because we live in a world where geopolitics and technology go hand in hand. Those who champion technological innovation will shape the future, and we must ensure that Europe plays a leading role in this.”

A cornerstone of the package is a sequel to the EU’s 2023 Chips Act to further boost local production of semiconductors by cutting red tape for chip fabs and fostering a European chipmaking ecosystem.

Europe’s vulnerability to the global chip supply chain centered in East Asia was highlighted last year in a power struggle at the Chinese-owned, Netherlands-based chipmaker Nexperia.

Another key part of the package is supporting local cloud and AI development, with plans to triple Europe’s data center capacity by over the next five to seven years. The EU is pushing to expand data centers to keep up with the AI boom, which is driving demand for cloud computing services.

The proposals from the EU’s executive arm still need to be debated by the EU’s two other main institutions, the European Parliament and the Council of the European Union.