EU Eyes Tech Autonomy with Chips Act 2.0, Cloud Assessments
The European Union is set to unveil a new tech sovereignty agenda aimed at reducing its dependence on US and Chinese technology providers, focusing on domestic semiconductor manufacturing and open-source tech. This initiative includes measures like a "Chips Act 2.0" and a "Cloud and AI Development Act" that could require member states to assess reliance on non-European tech. Such assessments have significant implications for US cloud providers, potentially shifting investment towards European alternatives and promoting open-source solutions.
Key Takeaways
- The European Tech Sovereignty package expands on the original Chips Act, linking support for chip production to European cloud infrastructure investment.
- A "Cloud and AI Development Act" proposes "sovereignty risk assessments" requiring member states to evaluate reliance on non-European tech vendors.
- Currently, Amazon, Google, and Microsoft control approximately 70% of the European cloud market, making them primary targets for these assessments.
- The strategy includes promoting open-source technologies to reduce reliance on proprietary services from global tech companies.
- The initiative shifts the EU's focus from primarily regulating global tech firms to actively building European digital capacity.
Why It Matters
The EU's new tech sovereignty agenda signals a significant policy shift, moving beyond regulation to industrial policy aimed at fostering domestic tech champions. This directly impacts US cloud providers, who currently dominate the European market, as EU member states may be required to shift infrastructure to European alternatives. For the streaming ecosystem, this could lead to increased regional data residency requirements, new European-centric cloud and CDN options, and potentially higher compliance costs for platforms operating across the bloc. Watch for specific tenders and investment announcements from EU governments and companies directed towards European cloud and AI infrastructure providers.
Read full article at pymnts.com
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