Critics argue that the EU's proposed Cloud and AI Development Act may increase reliance on US Big Tech rather than fostering European digital sovereignty.

European Commission President Ursula von der Leyen is expected to discuss data centre expansion in her upcoming State of the Union address on 16 September. The proposal, known as the Cloud and AI Development Act (CADA), aims to fast-track infrastructure development across the bloc through expedited permits and grid connections. However, critics warn that the plan could undermine environmental protections and limit public participation in project oversight.

Impact on Market Sovereignty

The European Commission introduced CADA in June 2026 with the goal of bolstering European AI independence. Despite these stated objectives, research from SOMO indicates that US-based firms like Microsoft and Google currently hold the most data centre projects in the EU. Because co-location firms often rely on these companies as 'anchor customers,' there are concerns that the fast-tracking measures will primarily benefit US Big Tech expansion rather than European entities. Critics argue that the commission's current safeguards are insufficient to prevent market dominance. Because data centre operations are often opaque, authorities may struggle to identify the true beneficiaries of these projects until construction is complete. Furthermore, some co-location firms have indicated they are unwilling to reserve capacity specifically for European public bodies or companies.

Environmental and Democratic Concerns

CADA includes provisions for 'data centre acceleration zones' that bypass standard environmental safeguards and restrict the ability of local communities to legally challenge new developments. This approach faces opposition in several member states, with ongoing legal challenges against data centre projects already reported in Spain, France, Ireland, and the Netherlands. Opponents of the current proposal are calling on members of the European Parliament to intervene. Suggested changes include removing the acceleration zone provisions and implementing a temporary ban on data centres that are owned by, developed for, or primarily serve Big Tech firms.