A European Commission proposal on AI and Cloud is set to come out in December.
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Tech companies and industry groups fear that upcoming rules for cloud providers might be too restrictive for non-European businesses, according to consultation responses filed on the European Commission’s AI and Cloud Development Act.
The Commission began gathering feedback after it said in April it plans an AI and Cloud initiative, as part of its so-called AI Continent Action Plan, in a bid to help boost the uptake of artificial intelligence tools by companies.
When it comes to cloud and computing infrastructure in Europe, the Commission said there is a gap between available capacity and needs in the bloc, given the rising demands stemming from AI. Currently, European companies are heavily reliant on US companies such as Microsoft and AWS.
The consultation aims to find a solution for “the lack of a competitive EU-based offer of cloud computing services at sufficient scale to serve highly critical use cases with particularly high security needs, as found in various economic sectors and the public sector,” the consultation text said.
While companies say they support the idea for a stronger European cloud, they question how to define the guidelines for sovereignty. German digital association Bitkom, for example, said the focus should be on freedom of choice, and resilience and diversification.
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Microsoft echoes the comments saying that “rather than imposing restrictive policies or measures […] the EU should focus on diversifying supply chains, […] this will allow governments and customers to rely on an open and competitive market and to choose from a diverse range of cloud service providers, based on their needs and on objective and risk-based criteria such as governance, risk management, security, transparency and performance.”
Software trade group BSA, warned that implementing strict requirements could “severely restrict the ability of European customers” to choose the services that meet their needs.
“Many European companies currently use non-European cloud providers to have access to technical performance, cost, or service features that are not provided by some European vendors,” it adds.
German internet industry group Eco said that measures should be “shaped transparently and proportionally, it should be ensured that international cloud providers are not excluded on geographical aspects alone.”
European Parliament report
EU’s AI Plan: A Surreal Surge of Ideas
What’s the buzz? The European Commission’s read‑the‑room for the AI Continent Action Plan is already buzzing with over 130 proposals. Germans, Spaniards, Belgians, and a handful of curious voices are packing the discussion with fresh angles.
Countdown to December
All eyes are on the December launch. Though the consultation closes this Thursday, the clock is already ticking. Good news: a solid proposal is tight on its heels—and is slated to hit the public eye next month. The rest is just the final puzzle pieces, slated for later.
Beyond the Big Picture
Other parts of the AI Continent Action Plan—spanning infrastructure, data access, cloud services, skills, and regulations—are still in the drafting room. No rush, just the right balance of ambition and practicality.
Industry Upgrades on the Horizon
Commission President Ursula von der Leyen painted the canvas in February in Paris: “We’re turning Europe’s stalwart industries into powerful engines of AI innovation.” Think of factories, healthcare, energy—now expected to sprint along faster tracks, powered by AI magic.
Tech Sovereignty in the Mix
The European Parliament is not far behind. Their new report leans heavily toward boosting tech sovereignty and trimming reliance on non‑European tech juggernauts. This could feed fresh insights into the Commission’s upcoming strategies.
Cloud Concerns Caught in the Spotlight
When a lawmaker whined about our dependence on US cloud leaders, EU Tech Commissioner Henna Virkkunen quipped: “The upcoming Cloud & AI Development Act will carve out secure, EU‑based capacity for critical needs—backed by a single EU‑wide public sector cloud policy.” A reassuring nod that Europe’s cloud future is getting a solid foundation.