The race for technological sovereignty is heating up across the Atlantic. The European Council on Foreign Relations has unveiled a remarkably bold strategy that charts a path for European nations to reduce their dependence on American technology giants by 2025. Having covered the technology sector for nearly a decade, I’m struck by the audacity of this proposal—it’s not just about regulatory frameworks anymore, but about fundamentally reshaping Europe’s digital infrastructure.
Last month at the Brussels Digital Summit, I watched EU Commissioner Thierry Breton outline what many dismissed as impossible: a concrete timeline for European tech independence. “This isn’t merely aspirational,” Breton insisted during our brief conversation after his keynote. “It’s existential for Europe’s economic future.” The plan represents the most comprehensive approach to date for challenging America’s digital hegemony.
The strategy targets five critical domains where European dependence on U.S. technology is most pronounced: cloud computing, semiconductor production, artificial intelligence, digital payment systems, and social media platforms. What makes this initiative different from previous European digital manifestos is its pragmatic approach to implementation, combining public investment, regulatory leverage, and strategic industrial policy.
Cloud infrastructure sits at the heart of the independence strategy. Currently, American providers AWS, Microsoft Azure, and Google Cloud control roughly 69% of Europe’s cloud market, according to recent DESI Index data. The proposal calls for €45 billion in combined public-private investment to scale European alternatives like OVHcloud and Deutsche Telekom’s sovereign cloud offerings.
“The problem isn’t just economic dependence,” explains Dr. Francesca Bria, President of the Italian National Innovation Fund, whom I interviewed last week. “When European businesses and governments store their most sensitive data on American infrastructure, we’re creating profound security and privacy vulnerabilities.”
The semiconductor crisis of 2021 remains fresh in European memory, with production lines across the continent grinding to a halt due to supply chain bottlenecks. Under the new plan, the European Chips Act would receive enhanced funding, growing from its current €43 billion to nearly €60 billion by 2025, with the explicit goal of manufacturing 20% of global advanced semiconductors on European soil by 2030.
What’s particularly striking about the proposal is its approach to artificial intelligence. Rather than simply replicating American AI models, Europe aims to develop specialized AI systems aligned with European values and regulatory frameworks. The plan earmarks €15 billion for AI research focused on privacy-preserving techniques, explainable algorithms, and energy-efficient computing—areas where Europe already holds intellectual advantages.
During a recent tech panel in Berlin, I noted how European tech leaders displayed a newfound confidence. “We’re not trying to build European versions of Google or Facebook,” said Christian Klein, CEO of SAP. “We’re designing the next generation of enterprise technology that puts data sovereignty and sustainability at its core.”
This shift in mindset represents perhaps the most significant change. Previous European digital initiatives often felt defensive or reactionary—attempts to catch up with Silicon Valley. This strategy instead leverages Europe’s strengths in industrial policy, regulatory expertise, and collaborative innovation.
The financial elements of the plan are substantial. Beyond direct investment in strategic technologies, the proposal introduces a Digital Sovereignty Fund worth €100 billion, sourced from a combination of redirected EU budget resources, new digital service taxes, and private sector contributions.
However, significant challenges remain. Internal fragmentation continues to hamper European tech competitiveness. The EU’s 27 member states maintain different priorities, technical standards, and investment capacities. France and Germany have demonstrated willingness to fund sovereign technology initiatives, while smaller economies remain concerned about costs.
“The window for establishing meaningful technological sovereignty is narrowing,” warns Margrethe Vestager, the EU’s competition chief. Her assessment reflects growing concern that American and Chinese technological dominance could become irreversible without decisive action.
The social dimension of the plan acknowledges a reality I’ve observed covering tech conferences across Europe: the continent’s talent retention problem. Nearly 40% of European software engineers relocate to the United States within five years of graduation, according to European Commission data. The strategy proposes a comprehensive talent retention program, including tax incentives for tech workers, enhanced research grants, and streamlined startup funding.
What makes this initiative particularly fascinating is its diplomatic approach. Rather than framing the strategy as anti-American, European officials describe it as pursuing “strategic autonomy” while maintaining technological alliances with like-minded partners, including democratic elements of the American tech ecosystem.
“This isn’t about technological isolationism,” clarifies Bruno Le Maire, France’s finance minister. “It’s about ensuring Europe has choices and capabilities in critical digital infrastructure.”
The most immediate impact may be felt in data governance. The proposal accelerates the development of European data spaces—sector-specific environments for secure data sharing across health, mobility, energy, and manufacturing. These controlled ecosystems would operate under European jurisdiction, addressing the legal uncertainties that have plagued transatlantic data transfers since the collapse of the Privacy Shield framework.
For ordinary Europeans, the effects will materialize gradually. By 2025, businesses may begin shifting to European cloud providers, government services might operate on sovereign digital infrastructure, and consumers could see European alternatives to current American platforms gaining traction.
As someone who’s chronicled technology’s evolution for years, I recognize the enormity of Europe’s challenge. American tech giants didn’t achieve dominance through policy documents but through innovation, scale, and aggressive market expansion. Europe’s plan acknowledges this reality while betting that the coming technological transition—toward ambient computing, industrial AI, and sustainability-focused solutions—offers a narrow window for reshaping the competitive landscape.
Whether Europe can translate this ambitious strategy into technological reality remains uncertain. But what’s clear is that the continent’s approach to digital sovereignty has evolved from rhetorical aspiration to concrete industrial strategy. For both European and American technology ecosystems, the implications will reshape digital competition for years to come.
