Europe announces digital sovereignty, but 80% of its infrastructure is foreign

What happened?

On June 3, 2026, the European Commission presented the Technology Sovereignty Package, a set of measures including the Chips Act 2.0, the Cloud and AI Development Act, an open-source strategy, and a roadmap for energy digitalization. The stated goal is to reduce technological dependence on the United States and China, which control over 80% of Europe's digital infrastructure, according to data cited by WWWhat's new. This package comes after years of fragmented attempts: from the first Digital Single Market Strategy in 2015 to the Horizon Europe program, which allocated €95.5 billion to R&D (2021-2027), but without significant progress in sovereignty. The original Chips Act of 2022 promised €43 billion to double semiconductor production, but according to a 2025 Commission report, only 28% of those funds had been disbursed. Now, the Chips Act 2.0 updates that goal: for Europe to produce 20% of the world's chips by 2030, up from the current 9% (source: SIA). However, the package does not detail the total budget, raising doubts about its feasibility. In cloud computing, AWS, Microsoft Azure, and Google Cloud hold over 70% of the European market (Synergy Research data, 2025), and the new "cloud sovereignty" certification aims to create a federated alternative through the EURO-3C project (Telco-Edge-Cloud), initially funded with only €75 million, a figure that pales compared to the €150 billion Big Tech invests annually in global cloud infrastructure.

Why is it important?

Foreign dependence is not just an economic issue but also one of security and strategic autonomy. In semiconductors, the Chips Act 2.0 aims for Europe to produce 20% of the world's chips by 2030, but today it only has ASML as a key player. ASML, a Dutch company, is the sole manufacturer of extreme ultraviolet (EUV) lithography machines, essential for chips under 7 nanometers. However, Europe lacks its own advanced chip manufacturing capacity: TSMC (Taiwan) and Samsung (South Korea) produce 92% of cutting-edge chips (source: BCG). The dependence is critical: during the COVID-19 pandemic, the chip shortage paralyzed the European automotive industry, which lost €210 billion in revenue (source: ACEA). In cloud computing, the situation is equally alarming. AWS, Azure, and Google Cloud process data from European governments, hospitals, and banks, meaning sensitive information leaves the continent. The General Data Protection Regulation (GDPR) does not prevent transfers to the US, but after the Snowden scandal (2013) and the invalidation of Privacy Shield (2020), distrust persists. The new "cloud sovereignty" certification aims to change this, but the challenge is titanic: building a federated Telco-Edge-Cloud infrastructure (EURO-3C project) with only €75 million initially seems insufficient. For comparison, building a single hyperscale data center costs between €1 billion and €3 billion (source: Gartner).

What consequences will it have?

In the short term, the package could accelerate investments in local data centers, such as the one Mistral is building in Paris with 13,800 Nvidia H100 chips, with a capacity of 300 petaflops, comparable to Europe's most powerful supercomputers. However, the lack of domestic computing capacity remains a bottleneck for AI adoption (target: 75% of European companies by 2030). According to Eurostat, only 12% of European SMEs used AI in 2025, compared to 35% in the US. US tech companies will likely seek to adapt to certification requirements, but regulatory fragmentation and lack of massive public investment could delay progress. For example, Gaia-X, the European federated cloud project launched in 2019, has achieved only 12 certified providers versus AWS's over 200 (source: Gaia-X Association). Critical sectors (defense, health, finance) will be the first to demand certified providers, which could raise service costs. A European Commission study estimates certification could increase cloud costs by 15% to 25% for companies, though it would reduce dependence in the long term. In chips, the investment needed to reach 20% of global production is estimated at least €50 billion additional (source: McKinsey), but the package does not specify funding sources. Comparison with the US CHIPS and Science Act (2022) is revealing: $52.7 billion in direct subsidies, which have already attracted investments from TSMC, Intel, and Samsung totaling over $200 billion. Europe, without a clear budget, risks falling behind.

What should readers know?

• The package is not binding until approved by the European Parliament and Council, a process that can take years. Experience with the Digital Markets Act (DMA) shows implementation took 18 months after proposal.
• Dependence on US cloud is so deep that even European projects like Gaia-X have not achieved viable alternatives. Gaia-X aimed for 80 providers by 2025 but only reached 12, and their combined market share is below 5% (source: IDC).
• Chip investment requires at least €43 billion (like the original Chips Act), but the new package does not detail the total budget. The original Chips Act allocated €3.3 billion from the EU budget, with the rest depending on member states, which have only committed €15 billion by 2025.
• European SMEs could benefit from incentives to adopt sovereign AI, but they will need training and funding. The Digital Europe program plans €2 billion for AI until 2027, but only €500 million is earmarked for SMEs.
• The EURO-3C project, with €75 million, is a drop in the ocean. For context, Microsoft's annual investment in European data centers exceeds €10 billion (source: Microsoft, 2025).

"Europe has the plan, but not the execution. Without massive and coordinated investment, digital sovereignty will remain an aspiration," notes the analysis by WWWhat's new. Added to this is geopolitical uncertainty: the war in Ukraine and tensions with China have highlighted supply chain vulnerabilities. The question is whether Europe can turn this package into reality or, as with previous initiatives, it will remain a set of good intentions.