Environmental groups, including Beyond Fossil Fuels and Stand.earth, have published a report challenging claims that AI will meaningfully address climate change. The analysis argues that rapid data centre expansion is being justified by overstated promises of ‘AI for climate’ benefits.
Researchers found that many cited emissions reductions relate to older forms of machine learning rather than energy-intensive generative AI systems. At the same time, rising electricity demand from large-scale AI deployment is driving increased fossil fuel use.
The report also questions evidence presented by corporations and institutions such as the International Energy Agency, stating that projected climate gains are often weak or exaggerated. Companies are reported to be drifting away from climate targets even when renewable energy offsets are included.
Campaigners say framing AI as a climate solution risks distracting from corporate decisions that increase pollution and digital infrastructure growth. They call for stronger accountability and clearer scrutiny of environmental claims linked to emerging technologies.
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Derived from the Latin word ‘superanus’, through the French word ‘souveraineté’, sovereignty can be understood as: ‘the ultimate overseer, or authority, in the decision-making process of the state and in the maintenance of order’ – Britannica. Digital sovereignty, specifically European digital sovereignty, refers to ‘Europe’s ability to act independently in the digital world’.
In 2020, the European Parliament already identified the consequences of reliance on non-EU technologies. From the economic and social influence of non-EU technology companies, which can undermine user control over their personal data, to the slow growth of the EU technology companies and a limitation on the enforcement of European laws.
Today, these concerns persist. From Romanian election interference on TikTok’s platform, Microsoft’s interference with the ICC, to the Dutch government authentication platform being acquired by a US firm, and booming American and Chinese LLMs compared to European LLMs. The EU is at a crossroads between international reliance and homegrown adoption.
The issue of the EU digital sovereignty has gained momentum in the context of recent and significant shifts in US foreign policy toward its allies. In this environment, the pursuit of the EU digital sovereignty appears as a justified and proportionate response, one that might previously have been perceived as unnecessarily confrontational.
In light of this, this analysis’s main points will discuss the rationale behind the EU digital sovereignty (including dependency, innovation and effective compliance), recent European-centric technological and platform shifts, the steps the EU is taking to successfully be digitally sovereign and finally, examples of European alternatives
Rationale behind the move
The reasons for digital sovereignty can be summed up in three main areas: (I) less dependency on non-EU tech, (ii) leading and innovating technological solutions, and (iii) ensuring better enforcement and subsequent adherence to data protection laws/fundamental rights.
(i) Less dependency: Global geopolitical tensions between US-China/Russia push Europe towards developing its own digital capabilities and secure its supply chains. Insecure supply chain makes Europe vulnerable to failing energy grids.
More recently, US giant Microsoft threatened the International legal order by revoking US-sanctioned International Criminal Court Chief Prosecutor Karim Khan’s Microsoft software access, preventing the Chief Prosecutor from working on his duties at the ICC. In light of these scenarios, Europeans are turning to developing more European-based solutions to reduce upstream dependencies.
(ii) Leaders & innovators: A common argument is that Americans innovate, the Chinese copy, and the Europeans regulate. If the EU aims to be a digital geopolitical player, it must position itself to be a regulator which promotes innovation. It can achieve this by upskilling its workforce of non-digital trades into digital ones to transform its workforce, have more EU digital infrastructure (data centres, cloud storage and management software), further increase innovation spending and create laws that truly allow for the uptake of EU technological development instead of relying on alternative, cheaper non-EU options.
(iii) Effective compliance: Knowing that fines are more difficult to enforce towards non-EU companies than the EU companies (ex., Clearview AI), EU-based technological organisations would allow for corrective measures, warnings, and fines to be enforced more effectively. Thus, enabling more adherence towards the EU’s digital agenda and respect for fundamental rights.
Can the EU achieve Digital Sovereignty?
The main speed bumps towards the EU digital sovereignty are: i) a lack of digital infrastructure (cloud storage & data centres), ii) (critical) raw material dependency and iii) Legislative initiatives to facilitate the path towards digital sovereignty (innovation procurement and fragmented compliance regime).
i) lack of digital infrastructure: In order for the EU to become digitally sovereign it must have its own sovereign digital infrastructure.
In practice, the EU relies heavily on American data centre providers (i.e. Equinix, Microsoft Azure, Amazon Web Services) hosted in the EU. In this case, even though the data is European and hosted in the EU, the company that hosts it is non-European. This poses reliance and legislative challenges, such as ensuring adequate technical and organisational measures to protect personal data when it is in transit to the US. Given the EU-US DPF, there is a legal basis for transferring EU personal data to the US.
However, if the DPF were to be struck down (perhaps due to the US’ Cloud Act), as it has been in the past (twice with Schrems I and Schrems II) and potentially Schrems III, there would no longer be a legal basis for the transfer of the EU personal data to a US data centre.
Previously, the EU’s 2022 Directive on critical entities resilience allowed for the EU countries to identify critical infrastructure and subsequently ensure they take the technical, security and organisational measures to assure their resilience. Part of this Directive covers digital infrastructure, including providers of cloud computing services and providers of data centres. From this, the EU has recently developed guidelines for member states to identify critical entities. However, these guidelines do not anticipate how to achieve resilience and leave this responsibility with member states.
ii) Raw material dependency: The EU cannot be digitally sovereign until it reduces some of its dependencies on other countries’ raw materials to build the hardware necessary to be technologically sovereign. In 2025, the EU’s goals were to create a new roadmap towards critical raw material (CRM) sovereignty to rely on its own energy sources and build infrastructure.
Thus, the RESourceEU Action Plan was born in December 2025. This plan contains 6 pillars: securing supply through knowledge, accelerating and promoting projects, using the circular economy and fostering innovation (recycling products which contain CRMs), increasing European demand for European projects (stockpiling CRMs), protecting the single market and partnering with third countries for long-lasting diversification. Practically speaking, part of this plan is to match Europe and or global raw material supply with European demand for European projects.
iii) Legislative initiatives to facilitate the path towards digital sovereignty:
Tackling difficult innovation procurement: the argument is to facilitate its uptake of innovation procurement across the EU. In 2026, the EU is set to reform its public procurement framework for innovation. The Innovation Procurement Update (IPU) team has representatives from over 33 countries (predominantly through law firms, Bird & Bird being the most represented), which recommends that innovation procurement reach 20% of all public procurement.
Another recommendation would help more costly innovative solutions to be awarded procurement projects, which in the past were awarded to cheaper procurement bids. In practice, the lowest price of a public procurement bid is preferred, and if it meets the remaining procurement conditions, it wins the bid – but de-prioritising this non-pricing criterion would enable companies with more costly innovative solutions to win public procurement bids.
Alleviating compliance challenges: lowering other compliance burdens whilst maintaining the digital aquis: recently announced at the World Economic Forum by Commission President Ursula von der Leyen, EU.inc would help cross-border business operations scaling up by alleviating company, corporate, insolvency, labour and taxation law compliance burdens. By harmonising these into a single framework, businesses can more easily grow and deploy cross-border solutions that would otherwise face hurdles.
Power through data: another legislative measure to help facilitate the path towards the EU digital sovereignty is unlocking the potential behind European data. In order to research innovative solutions, data is required. This can be achieved through personal or non-personal data. The EU’s GDPR regulates personal data and is currently undergoing amendments. If the proposed changes to the GDPR are approved, i.e. a broadening of its scope, data that used to be considered personal (and thus required GDPR compliance) could be deemed non-personal and used more freely for research purposes. The Data Act regulate the reuse and re-sharing of non-personal data. It aims to simplify and bolster the fair reuse of non-personal data. Overall, both personal and non-personal data can give important insight that research can benefit from in developing European innovative sovereign solutions.
European alternatives
European companies have already built a network of European platforms, services and apps with European values at heart:
Category
Currently Used
EU Alternative
Comments
Social media
TikTok, X, Instagram
Monnet (Luxembourg)
‘W’ (Sweden)
Monnet is a social media app prioritises connections and non-addictive scrolling. Recently announced ‘W’ replaces ‘X’ and is gaining major traction with non-advertising models at its heart.
Email
Microsoft’s Outlook and Google’s gmail
Tuta (mail/calendar), Proton (Germany), Mailbox (Germany), Mailfence (Belgium)
Replace email and calendar apps with a privacy focused business model.
Search engine
Google Search and DuckDuckGo
Qwant (France) and Ecosia (German)
Qwant has focused on privacy since its launch in 2013. Ecosia is an ecofriendly focused business model which helps plant trees when users search
Video conferencing
Microsoft Teams and Slack a
Visio (France), Wire (Switzerland, Mattermost (US but self hosted), Stackfield (Germany), Nextcloud Talk (Germany) and Threema (Switzerland)
These alternatives are end-to-end encrypted. Visio is used by the French Government
Writing tools
Microsoft’s Word & Excel and Google Sheets, Notion
Most of these options provide cloud storage and NexCloud is a recurring alternative across categories.
Finance
Visa and Mastercard
Wero (EU)
Not only will it provide an EU wide digital wallet option, but it will replace existing national options – providing for fast adoption.
LLM
OpenAI, Gemini, DeepSeek’s LLM
Mistral AI (France) and DeepL (Germany)
DeepL is already wildly used and Mistral is more transparent with its partially open-source model and ease of reuse for developers
Hardware
Semi conductors: ASML (Dutch) Data Center: GAIA-X (Belgium)
ASML is a chip powerhouse for the EU and GAIA-X set an example of EU based data centres with it open-source federated data infrastructure.
A dedicated website called ‘European Alternatives’ provides exactly what it says, European Alternatives. A list with over 50 categories and 100 alternatives
Conclusion
In recent years, the Union’s policy goals have shifted towards overt digital sovereignty solutions through diversification of materials and increased innovation spending, combined with a restructuring of the legislative framework to create the necessary path towards European digital infrastructure.
Whilst this analysis does not include all speed bumps, nor avenues towards the road of the EU digital sovereignty, it sheds light on the EU’s most recent major policy developments. Key questions remain regarding data reuse, its impact on data protection fundamental rights and whether this reshaping of the framework will yield the intended results.
Therefore, how will the EU tread whilst it becomes a more coherent sovereign geopolitical player?
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Authorities have imposed a full and immediate ban on the import of electronic waste in Malaysia to end the long-standing practice of foreign dumping.
The Anti-Corruption Commission reclassified all e-waste as an absolute prohibition, removing the earlier discretion that allowed limited exemptions. Officials argue that the country should protect its environment rather than accept hazardous materials from other nations.
Authorities have spent years intercepting containers loaded with discarded electronics suspected to contain toxic metals that contaminate soil and water when mishandled.
Environmental groups have repeatedly urged stronger controls, noting that waste from computers, mobile phones and household appliances poses severe risks to human health. The government now insists that firm enforcement must accompany the new restrictions to prevent continued smuggling.
The decision comes amid a widening corruption inquiry into oversight of e-waste. The director-general of the environment department and his deputy have been detained on suspicion of abuse of power. At the same time, investigators have frozen bank accounts and seized cash linked to the case.
The Home Ministry has pledged increased surveillance and warned that Malaysia will safeguard its national security by stopping illegal e-waste at its borders.
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Everbloom has developed Braid.AI, an AI system that transforms waste fibres into high-quality textiles. The process can use poultry feathers, wool, and other keratin-rich materials to replicate fabrics like cashmere.
The system works with standard textile machinery, combining chopped waste with proprietary compounds to produce biodegradable fibres. Everbloom aims to reduce environmental impact while maintaining material quality comparable to traditional cashmere.
Co-founder Sim Gulati said the startup aims to make materials economically accessible. Products are designed to offer both environmental benefits and cost-effectiveness, avoiding a ‘sustainable premium’ for consumers.
The AI can fine-tune fibre properties for multiple fabrics beyond cashmere, including polyester alternatives. Everbloom collects waste from farms, mills, and other sources to create a sustainable supply chain.
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Merriam-Webster has chosen ‘slop’ as its 2025 word of the year, reflecting the rise of low-quality digital content produced by AI. The term originally meant soft mud, but now describes absurd or fake online material.
Greg Barlow, Merriam-Webster’s president, said the word captures how AI-generated content has fascinated, annoyed and sometimes alarmed people. Tools like AI video generators can produce deepfakes and manipulated clips in seconds.
The spike in searches for ‘slop’ shows growing public awareness of poor-quality content and a desire for authenticity. People want real, genuine material rather than AI-driven junk content.
AI-generated slop includes everything from absurd videos to fake news and junky digital books. Merriam-Webster selects its word of the year by analysing search trends and cultural relevance.
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OpenAI has partnered with Australian data centre operator NextDC to build a major AI campus in western Sydney. The companies signed an agreement covering development, planning and long-term operation of the vast site.
NextDC said the project will include a supercluster of graphics processors to support advanced AI workloads. Both firms intend to create infrastructure capable of meeting rapid global demand for high-performance computing.
Australia estimates the development at A$7 billion and forecasts thousands of jobs during construction and ongoing roles across engineering and operations. Officials say the initiative aligns with national efforts to strengthen technological capability.
Plans feature renewable energy procurement and cooling systems that avoid drinking water use, addressing sustainability concerns. Treasurer Jim Chalmers said the project reflects growing confidence in Australia’s talent, clean energy capacity and emerging AI economy.
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Europe’s constrained energy supply and strict regulations are emerging as unlikely strengths in the global race to expand AI infrastructure. Limited power access and careful planning are encouraging more resilient, future-ready data-centre designs that appeal to long-term investors.
Countries such as the Nordics, Spain and Italy are drawing interest due to stronger renewable capacity and shorter grid-connection times, while the UK, Germany and the Netherlands face greater congestion.
Shifting to a ‘first ready, first connected’ model aims to curb speculation and speed up delivery of viable projects.
Europe’s biggest opportunity lies in cloud-focused facilities and AI inference, which analysts expect to account for most AI demand and must often remain within regional borders.
Tighter rules may slow construction, yet they reduce the risk of stranded assets and support sustainable sites that strengthen Europe’s investment case.
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South Africa is betting on green technology to drive development while cutting emissions. Overlapping laws and strategies create a complex, sometimes conflicting environment for investors and innovators. Analysts warn that fragmentation slows both climate action and the just transition.
Flagship measures, such as the Climate Change Act and the Just Energy Transition Investment Plan, anchor long-term goals. The government aims to mobilise around R1.5 trillion, including an initial R8.5 billion in catalytic finance.
Funding targets power generation, new energy vehicles and green hydrogen, with private capital expected to follow. Renewable Energy Independent Power Producer projects showcase successful public-private partnerships that attracted significant foreign and domestic investment.
Localisation rules, special economic zones and tariff tweaks seek to build manufacturing capacity and transfer skills. Critics argue that strict content quotas and data localisation can delay projects and deter prospective investors.
Observers say harmonised policies, clearer incentives and stronger coordination across sectors are essential for effective green technology transfer. Greater collaboration between the South African government, businesses, and universities could translate promising pilots into climate-resilient industries.
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Growing numbers of online users are turning to AI chatbots to verify suspicious images, yet many tools are failing to detect fakes they created themselves. AFP found several cases in Asia where AI systems labelled fabricated photos as authentic, including a viral image of former Philippine lawmaker Elizaldy Co.
The failures highlight a lack of genuine visual analysis in current models. Many models are primarily trained on language patterns, resulting to inconsistent decisions even when dealing with images generated by the same generative systems.
Investigations also uncovered similar misidentifications during unrest in Pakistan-administered Kashmir, where AI models wrongly validated synthetic protest images. A Columbia University review reinforced the trend, with seven leading systems unable to verify any of the ten authentic news photos.
Specialists argue that AI may assist professional fact-checkers but cannot replace them. They emphasise that human verification remains essential as AI-generated content becomes increasingly lifelike and continues to circulate widely across social media platforms.
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Ireland faces mounting pressure over soaring electricity use from data centres clustered around Dublin. Facilities powering global tech giants have grown into a major energy consumer, accounting for over a fifth of national demand.
The load could reach 30 percent by 2030 as expanding cloud and AI services drive further growth. Analysts warn that rising consumption threatens climate commitments and places significant strain on grid stability.
Campaigners argue that data centres monopolise renewable capacity while pushing Ireland towards potential EU emissions penalties. Some local authorities have already blocked developments due to insufficient grid capacity and limited on-site green generation.
Sector leaders fear stalled projects and uncertain policy may undermine Ireland’s role as a digital hub. Investment risks remain high unless upgrades, clearer rules and balanced planning reduce the pressure on national infrastructure.
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