European Commission proposes Chips 2.0 and AI-cloud law for EU

TL;DR
European Commission President Ursula von der Leyen presented a digital sovereignty package for the European Union that covers semiconductors, artificial intelligence, cloud, open source and energy system digitalisation. The package includes a Chips Act 2.0 update, a new Cloud and AI Development Act, open-source support measures and an energy roadmap tied to data centres and sovereign AI models. The proposal must still be negotiated by the European Parliament and the Council of the European Union before it can take effect.

European Commission President Ursula von der Leyen presented a new European Union digital sovereignty package covering semiconductors, artificial intelligence, cloud and open source. The package is structured around four areas: a Chips Act 2.0 update to the law in force since 2023, a new Cloud and AI Development Act, measures to expand open-source use, and a plan to digitalise the European energy system.

The Chips Act 2.0 proposal is intended to strengthen the semiconductor base for Europe’s artificial intelligence plans by speeding up permits, deepening cooperation with like-minded partners and introducing a seal of excellence for European semiconductor regions. The proposed Cloud and AI Development Act is intended to make data centre construction easier, simplify deployment requirements across the European Union and create a single framework to assess cloud and AI sovereignty. The European Commission said the goal is to triple European data centre capacity within five to seven years.

The open-source part of the package focuses on expanding alternatives in priority areas, investing in skills, startups and digital infrastructure, and increasing open-source use in public administration. A fourth area covers digitalisation of the European energy system, with a roadmap intended to integrate data centres while developing sovereign and secure AI models. Funding through 2028 will come from existing grants, while funding for later periods will depend on the next European Union budget. The European Commission had previously estimated combined public and private semiconductor investment of €120 billion by 2035.

Related questions

• What measures are included in the European Commission’s new digital sovereignty package?
• What is the goal of the proposed EU Cloud and AI Development Act?
• How does the Chips Act 2.0 proposal change the EU semiconductor strategy?
• When could the European Commission’s digital sovereignty proposal take effect?