On 3 June 2026, European Commission Executive Vice-President Henna Virkkunen announced a technological sovereignty package aimed at reducing Europe's reliance on non-EU digital providers, which currently account for over 80% of digital products, services, and infrastructure. The package includes four elements: the Chips Act 2.0, the Cloud and AI Development Act, an EU Open Source Strategy, and a Strategic Roadmap for Digitalisation and AI in Energy presented by Commissioner Dan Jørgensen. Virkkunen stressed that technological sovereignty does not mean protectionism but rather the ability to make independent choices and avoid dependence on single dominant suppliers.
The package marks a significant policy push to transform Europe's digital posture. Virkkunen noted that the situation results from decades of decisions favouring borrowing over building and consuming over creating. The Chips Act 2.0 builds on the first Chips Act, which mobilised €52 billion in investments, five pilot lines, and a network of competence centres. The new act aims to stimulate demand for AI-related chips, which are predicted to make up over 70% of the semiconductor market by 2030, through faster permitting, enhanced international cooperation, boosting chip design ecosystems, and reinforcing supply-side capabilities.
The Cloud and AI Development Act delivers on the AI Continent action plan's promise to triple sustainable data centre capacity in 5-7 years. It introduces a four-level sovereignty framework for public sector cloud and AI services, covering infrastructure location, software supply chain control, and cybersecurity. Virkkunen cited the Commission's recent €180 million tender for sovereign cloud services as evidence that European providers can deliver. The EU Open Source Strategy aims to harness Europe's 3 million open source contributors and 500 for-profit companies, targeting the €264 billion annual spending on non-EU proprietary digital products.
To address the investment gap, the Commission is launching an immediate consultation with Member States, the EIB Group, and financial stakeholders to build a European equity capacity for high-risk tech investments. Virkkunen emphasised that public funding alone is insufficient and private capital must fund strategic projects.
Commissioner Jørgensen presented the energy roadmap, warning that data centres consumed enough electricity in 2024 to power nearly 20 million European households, with demand expected to more than double by 2030. He announced a European rating scheme for data centres and agreements between public authorities, operators, and energy actors to manage grid integration, clean energy supply, and efficiency. On the positive side, digital tools can improve grid functions, forecast demand, and enable consumers to save up to 40% on energy bills through demand flexibility, as seen in Sweden. Jørgensen called for accelerating smart meter rollout, developing an EU AI model for the energy sector trained on European data, and improving cybersecurity for critical devices.
The package represents a shift towards assertive industrial policy, balancing openness with strategic autonomy. It aims to reduce dependence on non-EU suppliers while fostering European innovation. The proposals could benefit European tech companies and startups by creating demand and funding opportunities, but may impose compliance costs on data centre operators and raise energy costs if not managed carefully. The emphasis on private capital and equity capacity signals a move away from reliance on public funds, potentially favouring larger players over smaller innovators. The energy roadmap seeks to reconcile digital growth with sustainability, but the rapid expansion of data centres could strain grids and increase energy prices for consumers if not properly integrated.
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