The European Union (EU) is striving for tech sovereignty to reduce reliance on US technology giants like Amazon, Microsoft, and Google, to achieve its EU tech independence through massive investment, projected at as much as €300 billion over the next decade.
Europe relies heavily on US cloud services, with over two-thirds of the continent’s cloud market dominated by American firms. Europe also lags behind when it comes to microchip production, at just 10% of world production, while American firms dominate the AI revolution.
The reliance has been for some years but rising political tensions and shifting priorities of the US, brought on by President Trump’s approach to trade, mean EU technology regulation movement is now a priority. EU tech policy increasingly highlights on formulating indigenous substitutes to reduce reliance on foreign powers.
The EuroStack Vision
To address this issue, European politicians are adopting the idea of an “EuroStack,” a vision for a sovereign European tech stack based on three fundamental layers. Microchip infrastructure, digital platforms, such as cloud services, digital identity, the digital euro, as well as AI applications. The goal is to produce chips locally, and the plan will require good investment but offers a way to EU tech sovereignty and a strong digital future.
“Mounting friction across the Atlantic makes it clearer than ever that Europe must control its own technological destiny,” said innovation professor at University College London and former president of Italy’s National Innovation Fund, Francesca Bria.
Europe’s cloud infrastructure remains its biggest vulnerability, and the latest wave of EU tech regulation movement will create a safer, localized digital space for Europeans through projects like the Franco-German Gaia-X – designed to encourage companies to store data locally – have stalled as US companies continue to conquer their own marketplace.
On top of it, the EU tech alliance is calling for even stricter measures like the “Buy European Tech Act” to induce local businesses to invest in EU tech companies and offer a sustainable alternative to US cloud giants.
Yet the total expense of creating an independent tech infrastructure is a challenge in itself. It would cost an estimated $5.3 trillion (€5 trillion) to construct the EuroStack – a figure to be achieved through collective efforts from EU governments, private industry, and private investors.
Chinese Model for Europe
An unexpected source of inspiration for the pursuit of EU tech sovereignty is DeepSeek, a cost-effective Chinese AI model, with open-source architecture that offers a new answer to EU tech policy fellowship if scaled to the point of EU technology regulation.
Development cost of the model was under $6 million, much lower than tens of millions spent by US tech giants on similar work.
DeepSeek’s reliance on Chinese data storage, though, creates security threats for the EU, on the heels of several countries already prohibiting government application of the system. In response, a large demand has been built for EU technology policy to focus priority on data security and confidentiality with cheap, open-source products.
Europe would be able to mold a sovereign AI structure in line with reducing reliance on the American and Chinese tech goliaths employing DeepSeek’s methodology.
Final Thoughts
Europe’s quest for tech sovereignty and AI independence is another step by the Union towards reducing reliance on foreign powers and securing its place in technology. But achieving the goal will be a matter of serious investment, coordinated policymaking, and cooperation among EU tech companies, governments, and private sectors.
Even if the future is costly and complex, the adoption of EU tech regulation and innovation can eventually lead Europe to be a better global digital area where it remains both economically competitive and digitally secure.
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