The European Union yesterday took yet another step towards building its own artificial intelligence and cloud computing industry, as lawmakers prepare to scrutinise plans aimed at reducing the bloc’s dependence on foreign technology providers.
On Wednesday, 11 November, European Parliament co-rapporteurs Diego Solier and Reinier van Lanschot presented their joint draft report on the proposed Cloud and AI Development Act (CADA), setting out how they want Europe to strengthen its digital independence.
But what would the legislation mean for businesses and ordinary Europeans?
Why does Europe want its own cloud and AI infrastructure?
Cloud computing allows people and businesses to store data, run applications and access computing power over the internet. It is also essential to developing artificial intelligence, which requires enormous processing capacity and access to large datasets.
Europe currently relies heavily on a small number of non-European technology companies, which according to the European Commission control more than 70% of the European cloud market.
Lawmakers argue that such dependence creates economic and security risks, particularly when cloud infrastructure supports essential services such as hospitals, energy networks, transport systems and as seen recently, supermarkets.
The proposed act, first introduced by the Commission in June, aims to expand Europe’s data centre capacity, encourage research and innovation, and help European technology companies compete internationally.
What are MEPs proposing?
First, MEPs want common EU-wide criteria for assessing cloud providers, supported by accredited auditors. The aim is to ensure that businesses and public authorities can assess how securely and independently their data is stored and managed, rather than navigating inconsistent standards across member states.
Second, they want to accelerate the approval of new data centres in designated development zones. However, local residents should be consulted before these areas are established, and host communities should benefit from the investment. One suggestion is to reuse waste heat from data centres to warm schools or support local infrastructure.
The lawmakers also want public procurement to help European cloud providers grow by encouraging public authorities to purchase services from EU companies that meet the required security standards.
Importantly, the proposed safeguards would extend beyond publicly owned infrastructure to privately operated essential services, including hospitals, airports and energy providers.
What does this mean for ordinary Europeans?
For consumers, the changes would not be immediate. The legislation does not require individuals to switch cloud providers or change how they use AI applications.
However, its longer-term effects could be significant.
More European cloud infrastructure could give businesses and public institutions greater control over where sensitive information is stored and who can access it. Stronger safeguards could also reduce the risk of disruption to services people rely on daily.
Greater competition from European technology companies could eventually mean more choice, innovation and potentially better-priced digital services.
There are also questions about the environmental and local impact of expanding data centres, which require significant amounts of electricity, land and cooling resources. The proposed consultation and waste-heat measures are intended to address some of these concerns.
What happens next?
The report is expected to be discussed by Parliament’s Industry and Internal Market committees on 1 December, with a vote within the committee expected in March of next year, following a plenary vote in April.
The legislation is not yet law, and its final shape will depend on negotiations between Parliament and EU member states.
(Sources: European Parliament, European Commission)
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