EU proposes strict cloud rules potentially excluding US tech giants

Key facts

• The EU plans to propose strict criteria for cloud computing services in state tenders.
• The European Parliament will switch its default search engine to Qwant from Google starting June 4.
• The EU will join the U.S.-led Pax Silica initiative for AI chips and critical minerals.
• Bugcrowd has introduced European data residency for its offensive security platform.
• EU data centers must support carbon-free power amid AI demand.
• Europe is exploring alternatives to U.S. and Chinese social media platforms.
• A European satellite joint venture will test new EU merger rules.
• GMI Cloud and Magna AI are partnering for global sovereign AI infrastructure.
• France will test its 'Arcadia' AI battlefield technology during NATO drills.
• The UK plans to buy AI chips from domestic technology firms.

The European Union is implementing a multi-faceted strategy to decrease its dependence on U.S. technology companies and enhance its own digital sovereignty. A key component of this strategy involves proposing stringent criteria for cloud computing services in state tenders, which could potentially lead to the exclusion of major American providers like Amazon, Microsoft, and Google. This initiative aims to foster the growth of European businesses in the cloud sector.

Further demonstrating this shift, the European Parliament has decided to replace Google Search with Qwant, a privacy-focused European search engine, as its default starting June 4. This change affects approximately 720 lawmakers and thousands of staff, underscoring the EU's commitment to digital sovereignty and reducing reliance on U.S. tech providers. In a related move, Bugcrowd has introduced European data residency for its offensive security platform, enabling EU organizations to store sensitive vulnerability data within the EU to meet regional compliance and privacy needs.

While seeking to reduce reliance on U.S. tech, the EU is also engaging in strategic partnerships. The bloc is set to join the U.S.-led Pax Silica initiative, which focuses on securing supply chains for AI chips and critical minerals and countering China's influence. The EU acknowledges its current dependence on U.S. collaboration for immediate supply chain security. Simultaneously, Europe is exploring alternatives to U.S. and Chinese social media platforms due to concerns over opaque algorithms, inadequate protection for minors, hate speech, and disinformation, aiming to develop its own distinct approach to social media.

In the realm of advanced technology and defense, the EU is also fostering its own capabilities. A proposed European satellite joint venture involving Airbus SE, Leonardo SpA, and Thales SA will serve as an early test for the EU's revised merger framework, designed to cultivate globally competitive European companies. France is preparing to test its "Arcadia" artificial intelligence battlefield technology during upcoming NATO drills, positioning it as a European alternative to the U.S.-led Maven AI command and control system. Meanwhile, GMI Cloud and Magna AI Inc. are partnering to expand global sovereign AI infrastructure, with initial projects planned for Malaysia, Belgium, and Romania.

These developments occur against a backdrop of increasing demand for data processing power. The European Union faces the challenge of balancing the demand for data centers driven by the AI boom with its commitment to transitioning to carbon-free energy, requiring data centers to align with environmental goals as AI technology expands.