The European Union’s push for technological sovereignty has moved from political ambition toward draft legislation. A CEPA virtual discussion convened policy experts and government officials to examine the European Technological Sovereignty Package proposed by the European Commission in June 2026. The conversation covered how the package defines sovereignty, the design of its flagship legislation for cloud services procurement, its semiconductor and energy dimensions, its approach to open source, and the funding constraints that threaten the success of the package.
The Cloud Framework
Discussion started with the Cloud and AI Development Act, which is going to the European Parliament for review. The Act would establish a tiered public procurement framework for cloud services. Providers would face escalating obligations at each level, designed to guard against third-country laws that could compel access to EU data. Participants noted that the top two tiers, which account for roughly 11% of public contracts, could effectively exclude American hyperscalers. However, attendees pointed to Article 30 as a significant qualifier. Its derogation provision allows European governments to bypass stricter requirements when meeting them would be too costly or if there are no alternative options available.
With implementation targeted for around 2030, several participants questioned whether the framework would keep pace with advances in AI capabilities. Attendees drew parallels with the EU AI Act, the implementation of which was disrupted by new AI models. Notably, OpenAI released ChatGPT just four years ago. Where will AI and the Cloud markets be four years from now?
Chips, Energy, and Open Source
Beyond cloud, the package extends to the physical and software foundations of the digital economy. Chips Act 2.0 takes an innovation-focused approach. It aims to raise Europe’s share of the semiconductor market, currently at 10% and primarily tailored for foundational chips, while developing advanced AI chips. Participants indicated that ambition will depend on attracting top talent and substantial private capital.
Access to energy will also constrain Europe’s sovereignty ambitions, as meeting the expected load from AI data centers will present a major challenge. The Strategic Roadmap for Digitalisation and AI in the Energy Sector aims to lower queue times for grid interconnection and urge large public investment in grid infrastructure across borders.
On open source, attendees noted a long European tradition of treating widespread access to technology as a public utility. Notably, the Open Source strategy is not expected to produce an EU competitor to US frontier models. Instead, it aims to create the conditions for Europe to compete at the application layer, ensure access to high-performance models, and lead on adoption.
Takeaways
The discussion’s throughline was resilience and its limits. Participants pointed to the OVHcloud case, in which a Canadian court sought data held in Europe. They referred to it as a reminder that legal reach can follow a provider’s commercial presence rather than the location of its servers, and that many jurisdictions, including the US, assert such powers. The most pointed conclusion was on the financing gap. Without significant allocations in the next Multiannual Financial Framework, participants cautioned, the package risks remaining a wish list rather than a program. The shared view was that continued engagement offers the most promising path. It strengthens European capacity while keeping transatlantic cooperation intact.
Jack Galloway is a Program Assistant with the Tech Policy Program at the Center for European Policy Analysis (CEPA).
Alina Kreynovich is a Program Assistant for External Affairs at the Center for European Policy Analysis (CEPA).
This event was held at the Center for European Policy Analysis under the Chatham House Rule.
CEPA is a nonpartisan, nonprofit, public policy institution. All opinions expressed are those of the author(s) alone and may not represent those of the institutions they represent or the Center for European Policy Analysis. CEPA maintains a strict intellectual independence policy across all its projects and publications.
