European Commission Publishes Proposal for Cloud and AI Development Act

The European Commission published its proposal for the Cloud and AI Development Act (CADA) on 3 June 2026, aiming to triple the EU's data centre capacity within five to seven years and reduce dependence on non-EU cloud providers, whose EU market share has fallen from roughly 29% in 2017 to around 15%. The proposal establishes a single EU-wide cloud and AI sovereignty assessment framework with an associated public-sector adoption mechanism, and complements the Apply AI strategy, Chips Act 2.0 and EU Open Source Strategy. It now moves into co-legislative negotiation with Parliament and Council.

• Proposes a single EU-wide cloud and AI sovereignty assessment framework
• Introduces a public-sector cloud adoption mechanism favouring assessed sovereign providers
• Sets goal of tripling EU data centre capacity within five to seven years
• Supports deployment of AI 'gigafactories' and next-generation cloud/AI infrastructure
• Complements the Apply AI strategy and Chips Act 2.0