Cloud and AI Development Act: how Europe can build capacity and strategic autonomy

The European Commission's proposed Cloud and AI Development Act (CADA) aims to strengthen Europe's cloud and artificial intelligence ecosystem and reduce dependence on non-European providers. In our Opinion INT/1126 Cloud and AI Development Act we welcome this ambition but if Europe wants to remain competitive in the global digital economy it must swiftly move from declarations to delivery.

The proposal addresses a strategic challenge: today the European economy relies heavily on non-European cloud infrastructure and AI services, creating vulnerabilities for competitiveness, innovation and economic sovereignty. Europe needs a stronger domestic ecosystem capable of supporting businesses, public administrations and future technological developments. 

However, achieving this objective will require significantly more investment. The proposal sets the ambitious goal of tripling EU data-centre capacity by 2030, yet financing remains uncertain. Therefore, we call for cloud and AI infrastructure to become a protected priority in the next Multiannual Financial Framework and urge the mobilisation of both public and private capital. European institutional investors, including pension funds and insurers, should be encouraged to view datacentre and cloud infrastructure as a strategic long-term investment opportunity.

As Employers' Group, we also underline the importance of creating genuine market demand for European solutions. Expanding infrastructure alone will not reduce dependency on non-European hyperscalers if public procurement continues to favour established global providers. To address this, we propose giving substantially greater weight to "European added value" when awarding public contracts for cloud and AI services. This would strengthen the business case for European-owned and European-operated solutions and help stimulate investment in the sector.

At the same time, Europe must ensure that the rapid expansion of digital infrastructure remains sustainable, state of the art energy efficient and inclusive in terms of involving local communities and stakeholders. The designation of data-centre acceleration zones must be accompanied by environmental and social impact assessments, including evaluations of energy consumption, water use and efficient circularity concepts by making use of waste heat. Public consultation and engagement should become integral parts of the process in order to maintain public trust and support.

A further concern for employers is access to energy. Faster permitting procedures and network connections alone will not be enough if electricity generation fails to keep pace with the projected expansion of data centres. Europe must ensure that digital infrastructure development is aligned with its broader energy strategy and that sufficient generation capacity is available to support future growth. 

Skills are equally critical. The digital transformation will only succeed if Europe develops and retains the talent needed to design, operate, and manage advanced cloud and AI systems. Cloud and AI skills programmes must be developed together with social partners and to include specific measures targeting young people and young professionals. Businesses need a continuous pipeline of skilled workers to remain competitive in a rapidly evolving technological landscape. 

Finally, we raise an important but often overlooked issue: excessive dependence on automated systems. While AI can increase productivity and efficiency, Europe must ensure that organisations retain the human expertise necessary to verify, supervise and, where necessary, operate without these systems. Digital resilience depends not only on technology but also on preserving human knowledge and capabilities. 

For the Employers' Group, the Cloud and AI Development Act represents a major opportunity to strengthen Europe's competitiveness, technological leadership and strategic autonomy. To succeed, however, it must be backed by adequate investment, stronger support for European providers, a skilled workforce and a regulatory framework that combines innovation with sustainability and resilience.

By Antje Gerstein, EESC Employers' Group member and Member of the Study Group of Opinion INT/1126 Cloud and AI Development Act.