EU moves to cut reliance on US cloud services

Wary of being vulnerable to the whims of foreign governments, the European Union is preparing far-reaching new moves to ditch American digital companies and foreign chips in favor of European alternatives.

The EU's technological sovereignty package is among many measures taken by Brussels to slash dependence on foreign firms and boost local manufacturing - but risks opening up a new front in transatlantic tensions.

The hotly awaited package of new rules on chips, cloud computing and AI will be presented on Wednesday as part of the EU's effort to "reclaim its place in the global race for geoeconomic power," a draft strategy document seen by AFP said.

Of particular concern is how much the European Union relies on US cloud providers, which account for around 70 percent of Europe's market.

'Kill switch'

Since President Donald Trump returned to the White House last year, Europeans worry that critical digital infrastructure could be brought to a halt by an American "kill switch" if tensions ever reached fever pitch.

Top EU officials don't directly name their target as the United States, but American tech dominates, from cloud computing to social media to e-commerce.

"We need to develop our own capacities. We cannot allow someone trying to influence our own decisions, our own values, our own well-functioning economy and services," EU competition tsar Teresa Ribera said this month.

EU officials often point to Washington's sanctions against International Criminal Court judges - imposed by Trump in February 2025 - to illustrate the grip of US firms. Judge Nicolas Guillou has described how he lost access to his Visa card since it is an American system.

But US envoy to the EU Andrew Puzder has warned against any protectionist moves, while American companies have urged Europe not to keep them out.

"Europe will not be able to pull itself into the AI economy by bringing other people down," Puzder said when asked about the plans.

How can EU avoid being locked in?

The proposed package will include the Cloud and AI Development Act, aimed at speeding up the deployment of data center infrastructure, and a Chips Act proposal to reinforce the security of supply for semi-conductors by reducing dependence on foreign providers - a push for public authorities to use more open-source software solutions as a way to gain greater control and flexibility and avoid being locked in.

EU lawmaker Oliver Schenk said the package was "not about opposing our trading partners or closing markets," but said: "Europe must avoid becoming structurally dependent on any single external actor" for AI, cloud and chips.

The draft strategy, which could still change before the announcement, said governments would be expected to conduct "sovereignty risk assessments" for cloud and AI to "improve resilience" and spot European alternatives.

"Europe must ensure that public investments in AI and cloud infrastructure strengthen European innovation capacity, resilience and security," Schenk said.

Common purchasing

According to a second draft document on chips, the commission wants the power to intervene in the event of a crisis by forcing "manufacturers to prioritize orders for crisis-critical products, overriding existing contracts."

It also proposes common purchasing, which means the EU would act as "a central buyer for multiple member states facing severe shortages."

Aaron Cooper of tech industry group Business Software Alliance sought to offer reassurances to Europeans who fear any US administration could act to hurt the bloc at times of tension, following past frictions, including over tariffs.

"There is no such thing as a kill switch," Cooper said, adding companies "want to comply with laws wherever they're doing business."

American tech companies have been keen to shift the focus of the debate, insisting Europeans would be in charge of their data while using US services.