Europe wants to limit its reliance on foreign tech – but funding is limited and the proposed rules are weak
Europe is taking decisive steps to strengthen its control over the technology that underpins its societies. It is concerned about the digital infrastructure that sits behind everything from energy grids and water supplies to public transport, healthcare and the apps in people’s phones.
The European Commission has now published its package of measures for “tech sovereignty”, with the aim of building up its capabilities in digital technology.
The proposals rely heavily on private investment and may struggle to match global tech spending.
The plans include bolstering Europe’s semiconductor industry, expanding cloud computing, building up capabilities in AI, promoting open source software and setting out a plan for integrating digital technologies into energy systems. This last objective would support a sustainable expansion of data centres.
The backdrop is stark. Around 80% of Europe’s digital infrastructure and technology comes from outside the EU. An estimated €264 billion (£228 billion) a year is spent on cloud and software services that are mostly non-European.
Europe produces only about 10% of global semiconductors (the technology behind computer chips). In cloud computing, European providers hold roughly 15% of the market, while three US firms account for around 70%.
These imbalances were long seen as a natural outcome of globalisation. But in a world of geopolitical tension, they increasingly represent a strategic vulnerability. Export controls, sanctions and political pressure risk rippling through digital supply chains. The recent US ban on foreign access to advanced AI models sends a small yet clear........
