The European Commission on Wednesday revealed a package aimed at strengthening the European Union’s digital autonomy and resilience in semiconductors (chips), cloud services, artificial intelligence (AI) and open‑source solutions.
Components of the package
The package contains two main legislative proposals:
- a second version of the chip regulation;
- a regulation on cloud services and AI development.
These are complemented by a new open‑source strategy and a strategic roadmap for digitalisation and AI use in the energy sector.
Why the initiative was launched
According to the Commission’s statement, Europe remains heavily dependent on suppliers outside the Union for core digital technologies, while the rapid spread of AI is sharply increasing demand for computing capacity. The 2023 chip regulation was the EU’s first response to vulnerabilities in global supply chains, but the continent still relies on third countries for design and production of the most advanced semiconductors.
The Commission notes that components related to AI could account for more than 70 percent of the total semiconductor market by 2030, underlining the need for targeted policy measures.
Aims and instruments of the revised chip regulation
The draft aims to build cutting‑edge semiconductor capacity in Europe. Proposed measures include:
- speeding up administrative authorisation procedures;
- deeper cooperation with international partners that share similar values;
- introducing a new excellence label for European semiconductor manufacturing regions.
Following an ecosystem approach, the proposal would strengthen links between European chip manufacturers and their key customers, such as data‑centre operators and cloud providers.
Cloud and AI regulation: capacity build‑out and simplification
The regulation on cloud services and AI development forms the backbone of the Commission’s AI action plan. One stated objective is to triple European data‑centre capacity within five to seven years.
The new regulatory framework would simplify conditions for deploying data centres in the EU, introduce a common European methodology to assess cloud and AI sovereignty, and keep markets open to allied third‑country actors. Dedicated experience and accelerator centres would support coordinated and faster technology diffusion across member states.
Open‑source strategy and the developer community
The new open‑source strategy builds on what the Commission describes as a developer and contributor community of more than three million in Europe. Its aim is to expand freely available alternatives in cloud services, AI, internet technologies, cybersecurity and semiconductors. The initiative would promote open‑source adoption in public administrations through procurement guidance and sharing of best practices, contributing to the long‑term sustainability and security of European digital infrastructure.
Energy roadmap: sustainability and security of supply
The strategic roadmap for digitalising the energy sector tackles two intertwined challenges: high energy prices that hurt competitiveness and rising electricity demand from expanding digital infrastructure, including data centres.
The roadmap offers guidance for sustainable grid integration of data centres, accelerates the roll‑out of smart meters, and encourages development of AI models based on European data for the energy sector. Simplifying cross‑border energy data exchange could, the Commission says, enable smart services to help millions of consumers reduce household energy costs.
Financing and next steps
Negotiations on the two legislative proposals will soon start between the European Parliament and the Council of the European Union. The Commission notes that the governing board of the EuroHPC Joint Undertaking reached a political agreement on June 1, and that it is expected to launch calls in July for AI‑based gigaprojects.
In parallel, Brussels is consulting member states and the European Investment Bank Group on creating a large European equity fund to provide long‑term financing for the continent’s technological sovereignty efforts.
Why it matters
The package aims to reduce the EU’s external exposure in critical technologies, boost European design and manufacturing capacity, and enable faster, more sustainable expansion of data centres and AI‑based services. The ultimate impact will depend on the outcome of legislative negotiations and the successful mobilisation of financial resources.
