The European Union is drafting a comprehensive tech sovereignty strategy to reduce dependence on US technology providers across semiconductors, cloud computing and artificial intelligence. Brussels frames this as a critical moment to assert technological independence amid rising transatlantic tensions and concerns about access to critical services.

At the heart of the plan is a Cloud and AI Development Act designed to triple European data centre capacity within five to seven years. Officials worry that three US giants control over 70 per cent of the EU cloud market. The legislation would create four tiers of cloud sovereignty based on ownership, supply chains and data processing controls.

European tech companies like SAP, Mistral and OVHcloud stand to benefit from new procurement preferences and sovereignty risk assessments. Meanwhile, Microsoft has pledged to challenge any US government attempts to restrict cloud services to European customers. The strategy also includes a second chips law targeting domestic semiconductor manufacturing after supply disruptions.

Brussels insists this push represents strategic counterweights rather than isolation or protectionism. The draft paper remains under review ahead of next week's expected publication, signalling a fundamental shift from regulation to active promotion of homegrown alternatives.