The European Union presented an ambitious strategy to curb reliance on American technology, targeting expansion in data centers, semiconductors, and cloud computing. President of the European Commission Ursula von der Leyen framed the initiative as essential for economic and geopolitical security, citing concerns about potential U.S. 'kill switches' on critical infrastructure.

European officials aim to triple data center capacity to 60 gigawatts by 2036, requiring approximately $20 billion in investment. The Chips Act 2.0 builds on 2023 legislation to boost semiconductor demand among automakers and defense firms. Meanwhile, the Cloud and AI Development Act would restrict non-European providers from sensitive government contracts, directly challenging Amazon, Google and Microsoft dominance in European cloud services.

The bloc currently depends on foreign suppliers for over 80 percent of digital infrastructure, running a €145 billion trade deficit with China in early 2026. This tech sovereignty push coincides with strained U.S.-EU relations under Trump, who demands completion of a trade pact by July 4. The European Parliament votes in mid-June.

European companies including SAP, Mistral, and OVHcloud stand to benefit from protectionist policies. Officials stress the goal isn't replacing American technology but building resilience against single-supplier dependencies in an escalating global tech rivalry.