Amid growing concerns over technological dependence, the European Union has announced a comprehensive plan aimed at reducing its reliance on foreign technology providers and strengthening its own digital ecosystem.
The new strategy outlines greater government involvement in the technology sector to accelerate the development of data centers, support semiconductor manufacturing and boost the adoption of locally developed technologies. The initiative comes as European leaders increasingly view dependence on external technology providers as a potential economic and geopolitical risk.
European Commission President Ursula von der Leyen emphasized the importance of technological self-reliance, stating, “We cannot afford to depend on others for the technologies that keep our hospitals running, our energy grids stable and our services secure.”
According to the European Commission, the region currently depends on foreign providers for more than 80% of its digital products, services, infrastructure and intellectual property. To address this challenge, the proposed package encourages governments and businesses to prioritize domestic technology suppliers and could limit access to certain cloud computing contracts considered critical to security.
A key part of the strategy focuses on expanding data center infrastructure. The EU aims to at least triple its data center capacity by 2030 through faster approval processes, improved access to reliable electricity and increased public investment.
The plan also includes the proposed Chips Act 2.0, which seeks to stimulate semiconductor demand among European industries, including automotive and defense sectors. The proposal builds on the semiconductor manufacturing initiatives introduced in 2023.
Officials clarified that the objective is not to replace foreign technology entirely but to create a more resilient and diversified digital environment. The strategy aims to ensure that governments and businesses are not overly dependent on any single external supplier for critical technologies.
Many of the proposed measures will require approval through the European legislative process involving member states and the 720-member European Parliament, meaning implementation could take more than a year.
The initiative forms part of a broader effort to strengthen economic growth, enhance digital sovereignty and secure Europe’s long-term technological competitiveness.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.