For organisations scaling AI, the core challenge is no longer only innovation speed. It is whether the infrastructure, supply chains, data controls and governance behind AI systems can be trusted. Nemko Digital’s work in AI governance is directly relevant as the EU moves to link competitiveness with resilience, compliance and digital trust.
The semiconductor proposal builds on the existing European Chips Act, which was introduced to address vulnerabilities in global chip supply chains and reduce reliance on non-EU providers. Chips Act 2.0 is expected to focus on faster permitting, stronger semiconductor regions, closer links between chipmakers and demand sectors, and investment in strategic projects that support advanced AI applications - alongside complementary measures such as the ICT supply chain security toolbox to manage strategic dependencies.
The proposed Cloud and AI Development Act is positioned as a central element of the Commission’s AI Continent Action Plan. According to the Commission, the Act aims to triple data centre capacity in Europe over the next five to seven years while introducing an EU-wide framework to assess cloud and AI sovereignty, digital autonomy, and broader digital infrastructure assurance - including clearer service standards and stronger transparency ethics expectations for high-impact deployments.
This creates a practical governance issue for companies and public bodies: AI adoption will increasingly depend on demonstrable oversight of infrastructure, data, suppliers and operational risk in a fast-changing digital world. Organisations preparing for this shift may need stronger AI regulatory compliance programmes that connect legal obligations with procurement, technical controls and lifecycle monitoring - especially as digital sovereignty requirements increasingly shape vendor choices and cloud architecture.
The package also highlights open source as a strategic route to digital autonomy and European tech sovereignty, with an emphasis on EU open-source strategy execution. The Commission says Europe has more than three million open-source contributors and plans to scale open-source alternatives in priority areas including cloud, AI, cybersecurity, internet technologies and semiconductors - supported by initiatives such as an EU OSS catalogue and engagement channels like @digitalEU, and framed to better support EU startup growth, a scaleup strategy, and Europe’s digital future.
The European Technological Sovereignty Package also addresses the energy impact of digital infrastructure. Through the Strategic Roadmap for Digitalisation and AI in Energy, the Commission is seeking to integrate data centres into the energy system sustainably and accelerate digital and AI solutions for grids, smart meters and energy data exchange - modernising critical systems while recognising that skills and governance maturity will be needed to maintain trust. The Commission’s work on digitalisation of the energy system also points to the need for secure AI models trained on European data.
For technology providers, manufacturers and operators of AI-enabled systems, this means assurance expectations may extend beyond model performance to resilience, energy use, cybersecurity, data governance and supplier accountability. Nemko Digital’s guidance on AI governance tooling and technologies can support organisations seeking evidence-based mechanisms to manage these requirements at scale.
The legislative proposals will still need negotiation by the European Parliament and the Council before adoption and entry into force, marking a major shift in how Europe operationalises digital sovereignty. The Commission is also expected to launch a call for AI Gigafactories in July and consult Member States, the European Investment Bank Group and stakeholders on equity capacity to finance technology sovereignty ambitions - an agenda frequently associated with commission president Ursula von der Leyen and linked to wider initiatives such as a quantum Europe strategy and shaping Europe in international relations, as the EU positions itself as a global leader in trusted tech policy.
As Europe advances the European Technological Sovereignty Package, businesses will need to assess how digital sovereignty policies affect AI strategy, vendor choices, cloud architecture and compliance evidence - often a real-world test of governance readiness under new rules. Building continuous AI monitoring into governance programmes can help organisations maintain trust as regulatory and infrastructure requirements evolve.