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ARTICLE · 14 MAY 2026

EU Tech Sovereignty: Implications For Businesses And Investors Operating In Europe

A&O Shearman
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The European Commission's Tech Sovereignty Package will introduce sweeping new regulations on AI, cloud computing, semiconductors, and digital infrastructure that will fundamentally alter how businesses operate...

FranceTechnology
Laurie-Anne Ancenys
Laurie-Anne Ancenys
Catherine Di Lorenzo
Catherine Di Lorenzo
Filip Van Elsen
Filip Van Elsen
Alexander Veith
Alexander Veith
Nicole Ruckert
Nicole Ruckert
Author LinkedIn connections

On May 27, the European Commission will publish its Tech Sovereignty Package, a comprehensive set of new rules on AI, cloud, semiconductors, and digital infrastructure aimed at reshaping how businesses build, deploy, and procure digital technology across Europe. This will influence where billions in public investment are directed.

The measures are extensive. The Cloud and AI Development Act, the Chips Act II, and the first formal EU-level definition of "digital sovereignty" will collectively redefine market access, supply chain requirements, and the regulatory framework for any company providing cloud, hosting, or technology services, or operating or depending on data centers, in the EU. The implications for non-EU investors and providers are substantial.

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