The European Commission has unveiled a European technological sovereignty package aimed at strengthening the EU’s position in semiconductors, artificial intelligence (AI), cloud computing and open-source technologies. The initiative is intended to reduce dependence on external technology providers while supporting industrial and digital competitiveness. The proposal also links technological development with sustainability goals and long-term economic resilience.
European Commission President Ursula von der Leyen said technological independence is essential for modern societies, citing sectors including healthcare, energy and essential public services. She stated that Europe has talent, research excellence, an industrial base and a single market. Von der Leyen said the EU can compete globally if coordinated and supported.
Chips Act 2.0 to expand semiconductor production and investment
A first pillar of the package focuses on reinforcing Europe’s semiconductor supply chain for technologies spanning AI systems, automotive manufacturing and defense applications. Under the proposed Chips Act 2.0, the EU aims to expand domestic chip production capacity. The plan also targets improved supply chain resilience.
The Commission’s proposal includes stimulating both public and private investment in semiconductor innovation. It is expected to reduce dependency on non-European suppliers while strengthening Europe’s industrial base. The measures are positioned as part of building a more integrated European digital ecosystem.
Cloud and AI Development Act for data centre regulation and sovereignty checks
A second pillar centers on cloud computing and AI infrastructure through a proposed Cloud and AI Development Act. The framework is designed to support research and innovation in next-generation digital technologies. It also seeks to simplify regulatory conditions for building and operating data centres across member states.
The Commission plans to introduce a unified EU-wide system for assessing cloud and AI sovereignty. The approach is intended to provide consistency and strategic alignment across the bloc. This pillar is linked to the broader goal of advancing an “AI continent.”
Open-source programmes for skills, startups and long-term software maintenance
A third element of the strategy addresses digital independence via open-source technologies. The Commission aims to expand the role of open-source solutions in strategic sectors while building a more resilient and self-sustaining digital ecosystem. The proposal includes targeted investment in skills development.
Support for open-source startups is included alongside improved long-term maintenance of critical digital infrastructure. The stated goal is for Europe to retain control over key software systems while encouraging innovation and collaboration across the tech sector.
Digital tools for energy-system flexibility and industrial efficiency
The final pillar targets integration of digital technologies into Europe’s energy system to improve efficiency, reduce costs and support a transition to a more flexible power grid. The European Commission said demand-side flexibility enabled by digital tools could reduce electricity costs for EU consumers by more than €71 billion annually. It cited a potential 64% reduction in consumption-related expenses.
For industry, the Commission said AI-driven optimisation in operations and maintenance could generate savings of up to €94 billion per year by 2035. The package frames these measures as contributing to competitiveness and energy efficiency across multiple sectors. This pillar connects digital infrastructure policy with energy-system performance targets.
Dan Jørgensen oversees industry declaration involving energy and data centres
Alongside the legislative package, EU Energy and Housing Commissioner Dan Jørgensen oversaw the signing of a declaration of intent by 14 major European industry associations. The associations represent the energy and data centre sectors. The agreement outlines willingness to cooperate within a structured tripartite framework.
The declaration identifies key areas for joint action between industry, regulators and policymakers. It is described as expected to support implementation of Europe’s broader digital transformation strategy. No additional project details were provided in the announcement.
