The European cloud market is highly dependent on three US tech giants, which together control more than 70% of the market. The EU also spends €264 billion a year on predominantly US IT products and services.

To reduce this dependence, the European Commission has proposed the CADA. The proposal aims to make investment in large-scale data centre expansion more attractive, including by reducing administrative red tape and simplifying permit requirements. It also introduces rules for public sector procurement of cloud services.

Not ambitious enough

The researchers analysed the proposed EU legislation and conclude that it is not ambitious enough to strengthen Europe’s digital autonomy. Kristina Irion, one of the researchers, says the proposal could undermine Dutch ambitions to achieve greater digital sovereignty and reduce dependence on Big Tech, at a time when the Netherlands is taking steps in that direction.

The researchers argue that the proposal would limit public authorities’ ability to set additional requirements for many services and thereby reduce their dependence on a handful ofthird country providers. ‘As currently drafted, the EU proposal could even prevent public sector organisations from consciously choosing a European alternative,’ says Irion.

The proposed large-scale expansion of data centre capacity also does not guarantee greater digital autonomy, the researchers argue. ‘Under the proposal providers and developers from outside the EU would retain a strong foothold’, adds co-author Plixavra Vogiatzoglou. The researchers also say it gives too little attention to sustainability and the interests of local communities.

Digital autonomy requires more than additional data centres

The researchers say the EU’s dependence on a small number of non-European providers is a serious problem. But, in their view, the CADA focuses too heavily on expanding data centre capacity and encouraging the use of cloud and AI. ‘Greater digital autonomy also requires clear sustainability rules, democratic participation, stronger public procurement requirements and more support for European and open alternatives,’ says Irion.

Details publication

Plixavra Vogiatzoglou, Kristina Irion, Anushka Mittal, Laurens Naudts en Charis Papaevangelou, 2026, Position Paper ‘The EU’s Proposal for a Cloud and AI Development Act: Not the Industrial Policy the EU Needs'’, Amsterdam: The Institute for information Law, 2026