The European Commission believes that €200 billion will be needed to increase the capacity of data centres dedicated to cloud and artificial intelligence (AI) in the European Union by 2036, with the bulk of that investment expected to come from the private sector. In addition, €120 billion in public and private investment would be needed by 2035 for the semiconductor sector, including around €30 billion earmarked for the creation of a cutting-edge European foundry for semiconductor manufacturing. Lastly, in order to support implementation of the Strategic Roadmap for Digitalisation and AI in Energy, around €20 billion will have to be mobilised by public and private investors.
These estimates appear in the draft legislative package on European technological sovereignty, which the Commission plans to present on Wednesday 3 June.
The package combines an open source strategy aimed at strengthening European autonomy across the entire technology chain, a Chips Act 2.0 initiative designed to stimulate domestic demand for semiconductors, as well as a Cloud and AI Development Act aimed at unlocking the potential of European industry in these fields, as well as a Strategic Roadmap for Digitalisation and AI in Energy.
“Europe must mobilise strategic investment to scale innovation, deploy critical infrastructure and support the growth of homegrown technology champions”, says a draft Commission communication obtained by Agence Europe.
It identifies the future European Competitiveness Fund and its component dedicated to digital leadership as a “central vehicle” for mobilising investment in technological sovereignty under the EU’s post-2027 Multiannual Financial Framework (MFF).
As previously reported by Agence Europe (see EUROPE 13877/4), Commission intends to harness the potential of open source to develop European alternatives and strengthen Europe’s strategic autonomy in critical areas of digital infrastructure where it remains dependent today.
According to the draft Open Source Strategy, in order to cover all planned measures, “€1 billion will need to be mobilised by the public and private sectors over the next seven years”. Among measures under consideration, Commission “will mobilise European programmes and public procurement to help ‘open source’ initiatives develop into sustainable business models”.
In the short term, priorities will focus on areas where European open source alternatives already exist, notably cloud infrastructure and digital workplace applications, with a view to reaching at least 30 million active users by 2030 for open source collaboration and productivity tools, instant messaging and secure email.
Through ‘Demand Accelerators’, the Chips Act 2.0 will use “innovation procurement, as a strategic tool” to acquire semiconductor technologies “developed in the Union”. The text, which places emphasis on demand and builds on the AI mega-factories initiative (AI Factories), is intended to reduce external dependencies, particularly in light of Nexperia case.
A cybersecurity risk assessment will examine both technical vulnerabilities and non-technical obstacles. The draft also provides for creation of a European foundry intended for the manufacture of advanced semiconductors of 3 nanometres and below, combined with chipsets integration and three-dimensional assembly (3D packaging).
Pilot production is envisaged between 2030 and 2033.
For its part, the future Cloud and AI Development Act aims to ensure that these technologies are developed and used within EU, while reducing risks linked to dependence on third countries. It will introduce the “obligation for governments to conduct sovereignty risk assessments” in order to improve resilience, protect public order and promote European alternatives.
In particular, it provides for introduction of an “open source-first principle” in the purchase and procurement of cloud and AI software used by public administrations. In addition, around €2 billion will have to be devoted to research and innovation at European level over the next seven years under Cloud and AI Development Act.
A draft Delegated Regulation and a Strategic Roadmap for Digitalisation and AI in Energy will underpin the sustainability of European data centres and avoid any form of ‘greenwashing’ in this field, the Commission promises.
A common European scheme to rate the sustainability of data centres through electronic labels will be introduced, thereby increasing transparency on their environmental performance.
See the draft communication: https://aeur.eu/f/m4z ; and its annex: https://aeur.eu/f/m50 (Original version in French by Ana Pisonero Hernández with Solenn Paulic)