EU proposes Cloud and AI Development Act
The Cloud and AI Development Act complements Chips Act 2.0 and the EU Open Source Strategy.
The European Commission has adopted a proposal for the Cloud and AI Development Act to strengthen the EU’s cloud and AI ecosystem, investment, and infrastructure.
The proposal is intended to support broader deployment and adoption of AI by expanding cloud and data centre capacity across Europe. The Commission said the ongoing deployment of AI factories and AI gigafactories is designed to provide European businesses and researchers with access to high-capacity, next-generation computing resources.
The Cloud and AI Development Act is intended to complement those efforts by supporting the wider diffusion of AI through expanded cloud and data centre infrastructure. It will also complement the Apply AI strategy, which aims to boost AI and cloud adoption across Europe.
The proposal focuses on three objectives. The first is research, development, and innovation, supporting the next generation of cutting-edge and sustainable cloud and AI technologies. The second is capacity, accelerating the deployment of data centres across the EU, with a focus on facilities that enhance essential public sector functions.
The third objective is autonomy. The proposal would introduce a single EU-wide assessment framework for cloud and AI sovereignty, accompanied by a public-sector adoption mechanism.
The Commission said the Cloud and AI Development Act complements other initiatives, including Chips Act 2.0 and the EU Open Source Strategy, as part of efforts to build a more competitive, secure, and resilient European digital economy.
Why does it matter?
The proposal shows how the EU is treating cloud and data centre capacity as core infrastructure for AI competitiveness and digital sovereignty. AI factories and gigafactories may provide high-capacity computing resources, but wider AI adoption also depends on cloud infrastructure, sustainable data centres, and public-sector access to trusted services. The sovereignty assessment framework is especially important because it points to a more structured EU approach to assessing dependence, control, and trust in cloud and AI infrastructure.
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