Cloud computing Archives | Digital Watch Observatory

EU lawmakers challenge confidentiality rules on data centre emissions data

A group of 35 Members of the European Parliament has called on the European Commission to review confidentiality rules affecting public access to environmental data from data centres. The request focused on the disclosure of information related to emissions, energy use, and water consumption.

According to reporting by Investigate Europe, the disputed wording was linked to proposals submitted during consultations by Microsoft and DIGITALEUROPE. The clause was later incorporated into the EU Energy Efficiency Directive and limits disclosure of certain information related to individual data centres.

Critics argue that the measure may reduce transparency regarding the environmental impact of expanding digital infrastructure. Some lawmakers and advocacy groups have also raised questions about compatibility with transparency principles under the Aarhus Convention. Reports said critics believe the rules reduce scrutiny of the environmental impact linked to expanding AI and cloud infrastructure.

The lawmakers called on the European Commission to reconsider the provision and publish more detailed environmental reporting data. The issue has contributed to broader discussions in the EU regarding environmental accountability and oversight of digital infrastructure.

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CMA opens Strategic Market Status investigation into Microsoft business software

The UK Competition and Markets Authority has opened a Strategic Market Status investigation into Microsoft’s business software ecosystem, marking another major step in the country’s digital competition regime.

The investigation will examine Microsoft’s position across workplace software products widely used throughout the UK economy, including productivity software, personal computer and server operating systems, database management systems, security software and its growing AI assistant ecosystem, including Copilot. The CMA said more than 15 million commercial users across the UK rely on Microsoft’s software ecosystem.

Regulators will assess whether Microsoft has Strategic Market Status in business software and whether its position may limit customer choice. The CMA said it will examine concerns linked to product bundling, interoperability limits and default settings that could make it harder for businesses and public-sector organisations to switch providers or combine Microsoft tools with competing products.

The authority will also examine how competing AI services can integrate with Microsoft’s business software as workplace tools increasingly incorporate AI and agentic AI functions. The CMA said customers should be able to access software and AI services from a range of suppliers rather than being locked into a single ecosystem.

Cloud competition concerns are also linked to the probe. An SMS designation would allow the CMA to consider targeted interventions related to Microsoft’s software licensing practices, which were previously identified as reducing competition in cloud services.

The CMA will gather evidence from Microsoft, customers, rivals, challenger technology firms and other stakeholders before deciding whether to designate Microsoft with Strategic Market Status. The regulator said the investigation does not assume wrongdoing and that any future interventions would depend on the evidence and relevant legal tests.

Why does it matter?

The investigation shows how digital competition oversight is moving deeper into enterprise software, cloud infrastructure and AI-enabled workplace tools. As products such as Copilot become embedded in systems used by businesses and public services, regulators are increasingly treating interoperability, bundling and switching costs as strategic competition issues rather than narrow technical questions.

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Anthropic launches Claude Platform on AWS with managed AI agent tools

Anthropic has made Claude Platform on AWS generally available, giving AWS customers access to Claude Platform features through AWS authentication, billing and infrastructure integrations.

The platform includes Claude Managed Agents, code execution, web search, web fetch, prompt caching, batch processing, citations, support for the Files API, and support for Skills and MCP connectors. Anthropic said new Claude models and beta tools will become available on AWS at the same time they launch on the native Claude API.

Authentication runs through AWS Identity and Access Management, while audit logging is handled through AWS CloudTrail and billing through a single AWS invoice. Anthropic said the service is designed for organisations seeking native Claude Platform functionality while staying within existing AWS credentials, permissions and operational workflows.

The company also clarified the distinction between Claude Platform on AWS and Claude on Amazon Bedrock. Under the new platform, Anthropic operates the service and data is processed outside the AWS boundary.

By contrast, Claude on Amazon Bedrock keeps AWS as the data processor and operates within the AWS boundary, making it more suitable for customers with strict regional data residency requirements or those needing data processed exclusively within AWS infrastructure.

Why does it matter?

The launch shows how competition between major AI providers is shifting towards enterprise deployment, cloud integration and agent-based automation. For organisations, the choice is no longer only about model performance, but also about where data is processed, how access is controlled, how audit logs are handled and whether AI agents can be deployed within existing cloud governance systems.

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Rising data centre demand increases energy and cyber risks

Data centres are increasingly central to digital economies, but their rapid expansion is reshaping both electricity demand and cybersecurity risks. According to the International Energy Agency, data centres used about 1.5% of global electricity in 2024, with demand rising as AI and cloud services expand.

These facilities operate as both energy consumers and producers, relying on grid power while also maintaining on-site generation and battery systems. Their ability to switch power sources instantly supports service continuity but can also cause sudden load shifts that challenge grid stability during outages or cyber incidents.

Cybersecurity is now closely tied to energy resilience. Data centres depend on interconnected systems such as backup power, cooling, and digital control networks, all of which require continuous monitoring and protection.

Weaknesses in any part of this ‘system of systems’ can affect both service availability and wider electricity infrastructure.

Why does it matter?

Data centres are becoming a critical infrastructure that directly affects both digital services and electricity systems. Shared planning for power disruptions, cyber events, and load management is increasingly seen as necessary to ensure stability across both digital services and national energy systems.

Their rising energy demand and reliance on complex on-site and grid power arrangements mean disruptions or cyber incidents can have wider knock-on effects, making resilience and cross-sector coordination essential for overall system stability.

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European Commission publishes first Digital Markets Act review

The European Commission has published its first formal review of the Digital Markets Act, assessing how the regulation is affecting the behaviour of large online platforms in the EU digital economy. According to the review, the law has produced visible changes in some areas, while also exposing continuing problems in implementation and enforcement.

The review points to changes in user choice since the DMA entered into force in March 2024. These include support for third-party app stores and prompts on devices to select browsers or search engines, alongside reported increases in usage and downloads of alternative services.

Enforcement action is also a central part of the assessment. In April 2025, Apple was fined €500 million for blocking developers from directing users to cheaper purchasing options, while Meta was fined €200 million over its ‘consent or pay’ model. Both companies are appealing the decisions.

At the same time, the review identifies clear implementation challenges. It says investigations are taking around twice as long as the 12-month target, while legal procedures are being used to slow compliance. It also raises broader questions about whether fast-growing areas such as AI tools and cloud platforms should eventually be brought within the scope of the regulation.

The Digital Markets Act is therefore presented less as a completed intervention than as an ongoing regulatory process. The review suggests that its long-term impact will depend not only on the rules already in force, but also on how consistently they are enforced and how the EU responds to changes in digital markets.

Why does it matter?

The review matters because it shows that the real test of the Digital Markets Act is no longer whether the EU can write rules for large platforms, but whether it can enforce them quickly and adapt them to new market realities. Early changes in user choice suggest the law is starting to affect platform behaviour. However, delays in investigations and questions around AI and cloud services show that the regulatory contest is still evolving.

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White paper sets priorities for Europe’s digital sovereignty and tech competitiveness

A new whitepaper by GITEX AI Europe, in partnership with research firm LUE, outlines key priorities for strengthening Europe’s digital sovereignty and long-term technological competitiveness.

The study suggests scaling AI computing power, expanding cloud infrastructure, adopting open-source standards and increasing startup investment as central pillars. These measures aim to align innovation capacity with broader economic and industrial growth.

It highlights rising demand for AI infrastructure, with data centre expansion and energy integration seen as essential. The report also stresses the need for sovereign cloud systems to ensure greater control over data, alongside the role of open-source technologies in enabling flexibility and transparency.

The whitepaper concludes that stronger investment and coordinated policy are required to support deep-tech growth and prevent talent loss, with initiatives and partnerships shaping Europe’s digital future across the continent.

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Rubrik launches Agent Cloud for enterprise AI governance

Rubrik has launched Rubrik Agent Cloud for the Gemini Enterprise Agent Platform, introducing new governance and operational controls for enterprise AI agents built on Google Cloud.

According to the company, the integration is intended to help organisations accelerate and secure the deployment of AI agents by adding semantic governance and operational resilience through real-time, intent-based guardrails. The company says the offering is powered by its Semantic AI Governance Engine, or SAGE, which is designed to monitor and control autonomous agent behaviour.

Google Cloud’s Satish Thomas, Vice President for Applied AI and Platform Ecosystem, said:

‘As enterprises move into the autonomous era with Gemini Enterprise, security and governance are top of mind. Rubrik helps to provide a unified control layer for agent deployment and security that is critical for AI success.’

Rubrik’s Devvret Rishi, General Manager for AI, stated:

‘Enterprises want the speed of Google Cloud’s AI technologies, but also require the safety of Rubrik’s cyber resilience. Through this collaboration, we will remove the governance bottleneck for customers developing with Gemini Enterprise Agent Platform. RAC provides real-time guardrails organizations need to speed AI agents into production, without the worry of compromising enterprise security or integrity.’

Rubrik says the integration includes automated discovery of agents running on Gemini Enterprise Agent Platform Runtime, visibility into risk, access permissions and policy violations, a unified control interface for AI security policies, and an ‘Agent Rewind’ capability intended to instantly and precisely undo an autonomous agent’s destructive action.

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Microsoft commits A$25 billion to expand AI and cloud in Australia

Microsoft has announced its largest-ever investment in Australia, committing A$25 billion by the end of 2029 to expand AI and cloud infrastructure, strengthen cyber defence collaboration, and train three million Australians in AI skills by 2028.

The announcement was made alongside Australian Prime Minister Anthony Albanese during Microsoft chief executive Satya Nadella’s visit to Sydney. The company said the investment will expand Azure AI supercomputing and cloud capacity in Australia and increase its local cloud and AI infrastructure footprint by more than 140% by the end of 2029.

The announcement also includes collaboration with the Australian AI Safety Institute, an extension of the Microsoft-Australian Signals Directorate Cyber Shield to additional government agencies, and deeper work on national resilience with the Department of Home Affairs.

Albanese said:

‘We want to make sure all Australians benefit from AI. Our National AI Plan is all about capturing the economic opportunities of this transformative technology while protecting Australians from the risks.’ He added: ‘Microsoft’s long-term investment in our national capability will help deliver on that plan – strengthening our cyber defences and creating opportunity for Australian workers and businesses.’

Nadella added:

‘Australia has an enormous opportunity to translate AI into real economic growth and societal benefit.’ He added: ‘That is why we are making our largest investment in Australia to date, committing A$25 billion to expand AI and cloud capacity, strengthen cybersecurity, and expand access to digital skills across the country.‘

Microsoft said the investment is underpinned by a memorandum of understanding with the Australian Government, tied to national expectations for data center and AI infrastructure developers. It also said it will work with the Australian AI Safety Institute to monitor, test, and evaluate advanced AI systems, including human-AI interaction risks in companion chatbots and conversational AI systems.

Why does it matter?

The scale of the investment links infrastructure, skills, safety, and cyber resilience in a single package aligned with Australia’s AI Action Plan. It also signals that competition over AI capacity is increasingly tied not only to datacentres and compute, but to workforce readiness, regulatory cooperation, and national capability in areas such as cybersecurity and resilience.

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UK government applies AI to improve efficiency in transport policy consultations

The UK Department for Transport (DfT) has introduced generative AI tools to speed up the analysis of public consultations, significantly reducing time and operational costs. Managing 55 consultations yearly, the department often handles over 100,000 responses per process, previously requiring months of manual review.

A new Consultation Analysis Tool, built with Google Cloud and the Alan Turing Institute, processes large datasets within hours using advanced AI. The system identifies key themes with up to 90% accuracy, enabling faster policy responses while delivering estimated annual savings of £4 million.

Beyond consultation analysis, the department has expanded its use of AI across infrastructure planning and public communication. Cloud-based tools support sustainable transport decisions and help draft public inquiry responses by retrieving policy data and generating structured replies.

Human oversight remains central to the framework. AI-generated outputs are reviewed for accuracy, fairness, and bias, ensuring that final decisions stay with policy experts while maintaining transparency and public trust in government processes.

At a wider level, this reflects how AI can strengthen evidence-based policymaking, improve administrative efficiency, and free up expert capacity for higher-value decision-making, provided that transparency, accountability, and human oversight remain embedded in the process.

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MIT system boosts data centre storage efficiency

Researchers from MIT have developed a software-based system designed to improve the efficiency of data centre storage by addressing performance variability across pooled solid-state drives (SSDs). The approach targets inefficiencies that persist when multiple devices are shared across applications in large-scale environments.

The Sandook system identifies and manages three key sources of SSD variability, including hardware differences, read-write interference, and unpredictable garbage collection. Instead of treating these issues separately, the method addresses them simultaneously to improve overall throughput.

Sandook uses a two-tier architecture combining a global controller, which assigns workloads across the storage pool, and local controllers on each device that respond in real time to performance slowdowns. The design enables the system to redistribute tasks and reduce strain on underperforming drives dynamically.

Testing on workloads such as machine learning training, databases, and image compression showed performance gains of up to 94 percent compared with traditional methods, along with higher overall storage utilisation.

The approach could extend the lifespan of existing infrastructure and reduce the need for additional hardware investment. The shift may improve efficiency and cost-effectiveness while making more sustainable use of existing computing resources and limiting the pace of hardware replacement.

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