The European Technological Sovereignty Package — released after several delays — includes two legislative proposals: the Cloud and AI Development Act and Chips Act (CAIDA) 2.0 and the Open Source Strategy and Strategic Roadmap for Digitalization and AI in Energy.
CAIDA aims to triple data center capacity in the next five to seven years by easing restrictions for deployments across the EU. It also includes rules that, if enacted, would require EU public bodies to meet certain sovereignty criteria for cloud service procurement related to certain sensitive workloads.
Amid ongoing trans-Atlantic tensions and a long-time deep reliance on US tech providers, European organizations have become increasingly wary of a “kill switch” that would cut off access to digital services. There are also concerns that US hyperscalers could be compelled to share data with US government under the CLOUD Act and Foreign Intelligence Services Act (FISA), even when data centers are located in Europe.
The CAIDA proposals include four levels of criteria for suppliers; the most basic includes data center infrastructure located and operated in the region – something many US cloud suppliers already provide – with stricter rules around supplier ownership, full control over the software stack, and more stringent cybersecurity certification.
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