The European Union is set to introduce strict standards for cloud computing services involved in highly sensitive government procurement projects, a move that will likely exclude US technology giants Amazon, Microsoft, and Google from bidding on such contracts [1, 2, 3, 4, 5, 6, 7]. This legislation, known as the Cloud and AI Development Act, aims to reduce the EU's reliance on US technology providers and promote European-made software and hardware [1, 2, 3, 4, 6].

Under the proposed rules, government bids will include mandatory non-price criteria favoring technology developed within the EU. This prioritization targets preserving Europe's digital sovereignty and limiting exposure to foreign control or influence [1, 3, 4]. Currently, Amazon, Microsoft, and Google command more than 60% of the global cloud services market, underscoring the challenge to EU ambitions [1, 3].

The EU Commission also plans to act as a central purchasing agency, acquiring data center infrastructures, cloud computing, software, and AI services on behalf of member states and EU institutions [1]. The planned legislation is motivated in part by concerns over the US Cloud Act, which obliges US providers to grant law enforcement access to data stored abroad—raising alarms about data security and sovereignty within Europe's borders [1, 3].

Henna Virkkunen, EU Commissioner for Technology Sovereignty, said, "All are aware how important it is to not be dependent on one country or one company in key technical fields" [6]. The EU's efforts complement other initiatives such as the updated Chips Act 2.0, which strengthens Europe's semiconductor industry [6, 7].

The European Parliament has already taken steps toward digital sovereignty by switching its internal default search engine from Google to the French service Qwant [8]. The new cloud and AI regulations must still win approval from the 27 EU member countries and the European Parliament. The proposal is also expected to face strong opposition from the US government and industry [1, 3, 4].

The official announcement of the Cloud and AI Development Act by Vice-President Henna Virkkunen was scheduled for June 3, 2026. Further legislative discussions and negotiations will follow as the Union seeks to finalize the rules and define the scope of EU-supported technology procurement [1, 2, 3, 4].