EU to unveil plan to wean itself off US, Asia tech

The European Union will outline its strategy on Wednesday to cut dependence on American and Asian technology, focusing on strengthening domestic digital ecosystems. The package, led by EU tech tsar Henna Virkkunen, includes new rules on chips, cloud computing, and AI to ensure Europe retains control over services and data, reducing reliance on foreign providers for over 80% of its digital products. A draft strategy document reveals plans to triple the bloc’s data center capacity within five to seven years, encourage European-made semiconductors, and push public sectors toward open-source software. The EU also aims to create a common scheme to assess data center sustainability and impose sovereignty criteria for cloud and AI contracts, requiring governments to identify European providers when needed. The initiative follows concerns about vulnerabilities exposed during crises with China over chips and rare earths, as well as fears that a potential US ‘kill switch’ could disrupt cloud services. The EU spends an estimated 264 billion euros annually on US cloud software, with Microsoft’s Azure, Amazon Web Services, and Google Cloud dominating 70% of the market. The push also addresses data security risks, particularly the 2018 US Cloud Act, which allows Washington to access data from US-based providers regardless of location. While the EU insists it is not excluding foreign providers, lawmakers emphasize the need to align technology with European citizens’ demands, despite expectations that US providers will remain dominant. The European Commission has already signaled plans to reserve mobile satellite frequencies for European firms, marking a shift from regulating Big Tech to actively promoting European alternatives. Lawmakers highlight the critical role of chips, cloud computing, and AI in modern economies, warning that Europe cannot afford to remain dependent on foreign control.