EU Cloud and AI Development Act faces mixed reactions

The European Commission has introduced the Cloud and AI Development Act (CADA) to strengthen the EU’s cloud and artificial‑intelligence industry. The proposal seeks to triple the size of the European data‑centre market within five to seven years, create “Data Centre Acceleration Zones” and “Strategic Projects” that can obtain a fast‑track 12‑month permit process, and establish four levels of digital sovereignty with new obligations for member states. It also requires operators to adopt EU‑wide sustainability performance indicators and to keep critical data on EU‑controlled cloud services.

Industry groups and some member‑state officials have criticised the draft. The CCIA Europe association called it discriminatory because it would force states to designate use‑cases that non‑EU providers could not meet by default. Policymakers such as Swedish MEP Jörgen Warborn and Finnish MEP Aura Salla urged a risk‑based, simplified approach and more centralised testing of technological dependencies. German software vendor Nextcloud argued the proposal does not go far enough for the private sector. Funding for the programme has been trimmed, with public EU investment in the first phase capped at €1 billion – a fraction of the €4.1 billion originally pledged – and later phases dependent on the 2028 EU budget. The broader European AI and chips strategies also face financing gaps and concerns over energy supply for expanding data‑centre capacity.