European Commission proposes package for European Tech Sovereignty

The European Commission has presented a technological sovereignty package, accompanied by an EU Open Source Strategy, as set out in Communication COM(2026)503 final.

• Main announcement: The Commission launches a multi‑initiative technological sovereignty package (Chips Act 2.0, Cloud and AI Development Act - CADA, EU Open Source Strategy, Strategic Roadmap for Digitalisation and AI in Energy) to boost EU capacity across the tech stack, including a Delegated Regulation to rate data center sustainability and an official call for tenders to establish AI Gigafactories/AI compute access; key timelines include pilot semiconductor production envisaged 2030-2033, and tripling EU data center capacity over the next 5-7 years with target capacity by 2035.
• Background and details: The Communication quantifies investment needs and funding instruments: additional EUR 120 billion for semiconductors, around EUR 200 billion by 2036 to expand data center capacity, EUR 100 billion for Cloud and AI leadership initiatives (including AI Factories/Gigafactories), EUR 2 billion for open source over seven years, and an annual energy investment gap of EUR 400 billion; it mobilises instruments such as the European Competitiveness Fund (ECF), InvestAI (EUR 200 billion mobilisation target), Horizon Europe, EDICs, and proposals for a strategic tech equity capacity.