EU proposes Cloud and AI Development Act to boost tech sovereignty

The European Commission has published a proposal for the Cloud and AI Development Act, aimed at strengthening Europe’s cloud and AI ecosystem.

The proposal, known as CADA, forms part of the Commission’s Tech Sovereignty Package. It is also linked to the AI Continent Action Plan.

The Act is intended to make it easier and faster to deploy sustainable data centres and cloud infrastructure across the EU. The Commission says Europe needs more computing capacity as demand for AI grows among businesses, public administrations and critical sectors.

The proposal addresses several barriers to deployment. These include long permitting procedures, limited access to energy and land, financing constraints and dependence on non-EU cloud service providers.

The Commission frames the proposal as part of a broader effort to strengthen Europe’s digital autonomy and resilience. At the same time, it says the European market should remain open to international partners.

The Act would support cloud and AI deployment in critical sectors, where reliable and secure digital infrastructure is increasingly important. It would also introduce stronger sovereignty expectations for public-sector and critical digital services.

The wider Tech Sovereignty Package also includes Chips Act 2.0, an EU Open Source Strategy and a Strategic Roadmap for Digitalisation and AI in Energy.

The proposal must now go through the EU legislative process before final rules can be adopted.