Critical infrastructure Archives | Page 20 of 156

US cloud dominance sparks debate about Europe’s digital sovereignty

European technology leaders are increasingly questioning the long-held assumption that information technology operates outside politics, amid growing concerns about reliance on US cloud providers and digital infrastructure.

At HiPEAC 2026, Nextcloud chief executive Frank Karlitschek argued that software has become an instrument of power, warning that Europe’s dependence on American technology firms exposes organisations to legal uncertainty, rising costs, and geopolitical pressure.

He highlighted conflicts between EU privacy rules and US surveillance laws, predicting continued instability around cross-border data transfers and renewed risks of services becoming legally restricted.

Beyond regulation, Karlitschek pointed to monopoly power among major cloud providers, linking recent price increases to limited competition and warning that vendor lock-in strategies make switching increasingly difficult for European organisations.

He presented open-source and locally controlled cloud systems as a path toward digital sovereignty, urging stronger enforcement of EU competition rules alongside investment in decentralised, federated technology models.

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AI could harm the planet but also help save it

AI is often criticised for its growing electricity and water use, but experts argue it can also support sustainability. AI can reduce emissions, save energy, and optimise resource use across multiple sectors.

In agriculture, AI-powered irrigation helps farmers use water more efficiently. In Chile, precision systems reduced water consumption by up to 30%, while farmers earned extra income from verified savings.

Data centres and energy companies are deploying AI to improve efficiency, predict workloads, optimise cooling, monitor methane leaks, and schedule maintenance. These measures help reduce emissions and operational costs.

Buildings and aviation are also benefiting from AI. Innovative systems manage heating, cooling, and appliances more efficiently. AI also optimises flight routes, reducing fuel consumption and contrail formation, showing that wider adoption could help fight climate change.

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Europe opens new digital identity innovation hub in France

ID Campus has opened in the French city of Angers as a new European hub dedicated to identity technologies and trust-based digital services. Led by sovereign provider iDAKTO, the initiative aims to bring together public institutions, startups, and researchers to advance secure online systems.

The campus will support innovation, training, pilot projects, and cross-sector collaboration. A key focus is the rollout of the European Digital Identity Wallet. Deeptech firms, research labs, and international delegations are expected to use the site for testing and cooperation.

The project’s development involved partnerships with public bodies in France, including France Titres, La Mission French Tech, and Angers Loire Metropole, reflecting a wider push to strengthen national and European authentication infrastructure.

The official launch brought together leaders from government and industry to discuss the rise in digital adoption and tightening regulatory frameworks across Europe, as secure digital identity systems become central to public services and cross-border transactions.

European digital sovereignty remains a core driver of the initiative, with policymakers seeking interoperable trust frameworks that reduce reliance on non-European technologies.

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China moves toward data centres in orbit

China is planning to develop large-scale space-based data centres over the next five years as part of a broader push to support AI development. The China Aerospace Science and Technology Corporation (CASC) has announced plans to build gigawatt-class digital infrastructure in orbit, according to Chinese state broadcaster CCTV.

Under CASC’s five-year development plan, the space data centres are expected to combine cloud, edge and terminal technologies, allowing computing power, data storage and communication capacity to operate as an integrated system. The aim is to create high-performance infrastructure capable of supporting advanced AI workloads beyond Earth.

The initiative follows a recent CASC policy proposal calling for solar-powered, gigawatt-scale space-based hubs to supply energy for AI processing. The proposal aligns with China’s upcoming 15th Five-Year Plan, which is set to place AI at the centre of national development priorities.

China has already taken early steps in this direction. In May 2025, Zhejiang Lab launched 12 low Earth orbit satellites to form the first phase of its ‘Three-Body Computing Constellation.’ The research institute plans to eventually deploy around 2,800 satellites, targeting a total computing power of 1,000 peta operations per second.

Interest in space-based data centres is growing globally. European aerospace firm Thales Alenia Space has been studying its feasibility since 2023, while companies such as SpaceX, Blue Origin, and several startups in the US and the UAE are exploring similar concepts at varying stages of development and ambition.

Supporters argue that space data centres could reduce environmental impacts on Earth, benefit from constant solar energy and simplify cooling. However, experts warn that operating in space brings its own challenges, including exposure to radiation, solar flares and space debris, as well as higher costs and greater difficulty when repairs are needed.

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UK minister signals interest in universal basic income amid rising AI job disruption

Jason Stockwood, the UK investment minister, has suggested that a universal basic income could help protect workers as AI reshapes the labour market.

He argued that rapid advances in automation will cause disruptive shifts across several sectors, meaning the country must explore safety mechanisms rather than allowing sudden job losses to deepen inequality. He added that workers will need long-term retraining pathways as roles disappear.

Concern about the economic impact of AI continues to intensify.

Research by Morgan Stanley indicates that the UK is losing more jobs than it is creating because of automation and is being affected more severely than other major economies.

Warnings from London’s mayor, Sadiq Khan and senior global business figures, including JP Morgan’s chief executive Jamie Dimon, point to the risk of mass unemployment unless governments and companies step in with support.

Stockwood confirmed that a universal basic income is not part of formal government policy, although he said people inside government are discussing the idea.

He took up his post in September after a long career in the technology sector, including senior roles at Match.com, Lastminute.com and Travelocity, as well as leading a significant sale of Simply Business.

Additionally, Stockwood said he no longer pushes for stronger wealth-tax measures, but he criticised wealthy individuals who seek to minimise their contributions to public finances. He suggested that those who prioritise tax avoidance lack commitment to their communities and the country’s long-term success.

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French public office hit with €5 million CNIL fine after massive data leak

The data protection authority of France has imposed a €5 million penalty on France Travail after a massive data breach exposed sensitive personal information collected over two decades.

A leak which included social security numbers, email addresses, phone numbers and home addresses of an estimated 36.8 million people who had used the public employment service. CNIL said adequate security measures would have made access far more difficult for the attackers.

The investigation found that cybercriminals exploited employees through social engineering instead of breaking in through technical vulnerabilities.

CNIL highlighted the failure to secure such data breach requirements under the General Data Protection Regulation. The watchdog also noted that the size of the fine reflects the fact that France Travail operates with public funding.

France Travail has taken corrective steps since the breach, yet CNIL has ordered additional security improvements.

The authority set a deadline for these measures and warned that non-compliance would trigger a daily €5,000 penalty until France Travail meets GDPR obligations. A case that underlines growing pressure on public institutions to reinforce cybersecurity amid rising threats.

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Netherlands faces rising digital sovereignty threat, data authority warns

The Dutch data protection authority has urged the government to act swiftly to protect the country’s digital sovereignty, warning that dependence on overseas technology firms could expose vital public services to significant risk.

Concern has intensified after DigiD, the national digital identity system, appeared set for acquisition by a US company, raising questions about long-term control of key infrastructure.

The watchdog argues that the Netherlands relies heavily on a small group of non-European cloud and IT providers, and stresses that public bodies lack clear exit strategies if foreign ownership suddenly shifts.

Additionally, the watchdog criticises the government for treating digital autonomy as an academic exercise rather than recognising its immediate implications for communication between the state and citizens.

In a letter to the economy minister, the authority calls for a unified national approach rather than fragmented decisions by individual public bodies.

It proposes sovereignty criteria for all government contracts and suggests termination clauses that enable the state to withdraw immediately if a provider is sold abroad. It also notes the importance of designing public services to allow smooth provider changes when required.

The watchdog urges the government to strengthen European capacity by investing in scalable domestic alternatives, including a Dutch-controlled government cloud. The economy ministry has declined to comment.

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Fake AI assistant steals OpenAI credentials from thousands of Chrome users

A Chrome browser extension posing as an AI assistant has stolen OpenAI credentials from more than 10,000 users. Cybersecurity platform Obsidian identified the malicious software, known as H-Chat Assistant, which secretly harvested API keys and transmitted user data to hacker-controlled servers.

The extension, initially called ChatGPT Extension, appeared to function normally after users provided their OpenAI API keys. Analysts discovered that the theft occurred when users deleted chats or logged out, triggering the transmission of credentials via hardcoded Telegram bot credentials.

At least 459 unique API keys were exfiltrated to a Telegram channel months before they were discovered in January 2025.

Researchers believe the malicious activity began in July 2024 and continued undetected for months. Following disclosure to OpenAI on 13 January, the company revoked compromised API keys, though the extension reportedly remained available in the Chrome Web Store.

Security analysts identified 16 related extensions sharing the identical developer fingerprints, suggesting a coordinated campaign by a single threat actor.

LayerX Security consultant Natalie Zargarov warned that whilst current download numbers remain relatively low, AI-focused browser extensions could rapidly surge in popularity.

The malicious extensions exploit vulnerabilities in web-based authentication processes, creating, as researchers describe, a ‘materially expanded browser attack surface’ through deep integration with authenticated web applications.

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Tech giants weigh massive investment in OpenAI

NVIDIA, Microsoft, and Amazon are in talks to invest up to $60 billion in OpenAI, valuing the company at around $730 billion. The talks highlight intensifying competition among technology giants to secure strategic positions in the rapidly expanding AI sector.

NVIDIA is said to be considering the largest commitment, potentially investing as much as $30 billion, while Microsoft may add less than $10 billion despite its long-standing partnership with OpenAI.

Amazon could contribute more than $10 billion, strengthening its cloud and infrastructure ties with the company as demand for large-scale AI computing continues to rise.

OpenAI and NVIDIA are advancing plans to deploy large-scale data centre capacity, with a multi-year rollout starting in late 2026. The project aims to deliver large-scale high-performance computing, supporting OpenAI’s push towards artificial general intelligence and global expansion.

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OpenAI biometric social platform plans spark Worldcoin surge

Worldcoin jumped 40% after reports that OpenAI is developing a biometric social platform to verify users and eliminate bots. The proposed network would reportedly integrate AI tools while relying on biometric identification to ensure proof of personhood.

Sources cited by Forbes claim the project aims to create a humans-only platform, differentiating itself from existing social networks, including X. Development is said to be led by a small internal team, with work reportedly underway since early 2025.

Biometric verification could involve Apple’s Face ID or the World Orb scanner, a device linked to the World project co-founded by OpenAI chief executive Sam Altman.

The report sparked a sharp rally in Worldcoin, though part of the gains later reversed amid wider market weakness. Despite the brief surge, Worldcoin has remained sharply lower over the past year amid weak market sentiment and ongoing privacy concerns.

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