EU Drafts Cloud Tender Rules That Could Bar 3 U.S. Giants From State Contracts
Updated
Updated · Reuters · Jun 1
EU Drafts Cloud Tender Rules That Could Bar 3 U.S. Giants From State Contracts
3 articles · Updated · Reuters · Jun 1
Summary
A draft EU Cloud and AI Development Act would impose sovereignty tests on cloud providers in highly critical public tenders, potentially shutting Amazon, Microsoft and Google out of projects in banking, energy and healthcare.
The proposal adds mandatory non-price criteria — including EU-developed software and hardware, data-protection safeguards and limits on third-country control — driven by concerns over U.S. tech dominance and the reach of the U.S. Cloud Act.
The package, due Wednesday, also would let the Commission act as a central buyer of cloud, software, AI and data-centre services for EU institutions and member states.
Data centres would get fast-track permits, preferential grid access and lower network charges if they use European-made chips or cut energy costs.
The plan still needs approval from all 27 EU countries and the European Parliament, and could trigger U.S. backlash as Brussels pushes broader tech-sovereignty measures.
As the EU builds its own cloud, will public services become more secure or just more expensive and less efficient?
How can US tech giants operate in Europe when EU data laws directly oppose US surveillance mandates?
Europe’s 2026 Cloud and AI Act: How New Tender Rules Threaten U.S. Tech Giants and Reshape Digital Sovereignty
Overview
In June 2026, the EU advanced the Cloud and AI Development Act, aiming to reduce its reliance on non-EU technology companies and strengthen digital sovereignty. This new law introduces strict criteria for cloud services, especially for critical state tenders, building on earlier efforts like the Chips Act 2.0. Major U.S. cloud providers such as Amazon, Microsoft, and Google now face increased scrutiny and must adapt their offerings to meet these tougher EU requirements. The Act adds another layer of regulatory oversight, signaling a major shift in how the EU manages its digital infrastructure and market access.