Europe Wants to Be Less Reliant on American Tech. Here’s Why.

The European Union has unveiled a sweeping new “Tech Sovereignty Package” aimed at reducing its dependence on American technology companies and building more of its own digital infrastructure. The plan focuses on three areas where Europe believes it has become strategically vulnerable: cloud computing, artificial intelligence, and semiconductor production.  

At the center of the proposal are two new initiatives: the Cloud and AI Development Act and Chips Act 2.0. Together, they would encourage the construction of European-owned data centers, support domestic chip manufacturing, and give preference to European technology in critical sectors such as healthcare, energy, banking, and government services.  

European officials argue that relying on foreign technology creates national security and economic risks. EU Technology Commissioner Henna Virkkunen warned about the possibility of “kill switches” — situations where foreign governments or companies could potentially disrupt access to critical digital services. Commission President Ursula von der Leyen said Europe “cannot afford to depend on others” for technologies that keep essential services running.  

The challenge is significant. American firms such as Amazon, Microsoft, and Google dominate Europe’s cloud market, while Europe remains heavily dependent on Asia for advanced semiconductor manufacturing. The EU currently relies on non-European countries for more than 80% of key digital products, services, and infrastructure.  

ONEST Take

This is not really about technology.

It is about power.

For years, Europe viewed digital infrastructure as an economic issue. Today, it increasingly sees cloud services, AI systems, and semiconductor supply chains as strategic assets similar to energy, defense, or telecommunications.

The timing is not accidental. As geopolitical tensions rise and trust between allies becomes less predictable, European leaders are asking a simple question: What happens if critical infrastructure depends on someone else’s political decisions?

Whether Europe can successfully challenge American dominance is another matter. Building data centers is easier than creating the next Microsoft, Google, Nvidia, or OpenAI. The EU is trying to close a gap that took decades to develop.

Europe spent decades benefiting from globalization. Now it is preparing for a world where access to technology can become leverage. The goal is not simply economic growth. It is strategic independence. To achieve that, Europe sees the need to become a producer rather than remain a customer.