The European Union is proposing new, strict criteria for cloud computing services in sensitive state tenders, a move that could sideline Amazon, Microsoft, and Google from such projects, according to a draft document seen by Reuters.
The proposal, part of the Commission's Cloud and AI Development Act, is set to be unveiled Wednesday by EU tech chief Henna Virkkunen. It aims to reduce the bloc's dependence on U.S. technology and bolster European businesses.
The rules would introduce mandatory “non-price” criteria for tenders in sectors like banking, energy, and healthcare, requiring software and hardware developed within the EU. This would disadvantage U.S. providers, particularly as concerns mount over the U.S. Cloud Act, which could give American authorities access to data stored abroad.
The plan, which still needs backing from the 27 member states and the European Parliament, could draw backlash from Washington. The European Commission declined to comment on specifics but said the tech sovereignty package is “crucial for strengthening Europe's own technological capacities.” Amazon and Microsoft declined to comment.
Other criteria include the level of data protection, third-country control over data, and openness of cloud markets. The Commission also proposes acting as a central purchasing body for EU governments.
The draft also fast-tracks approval for data centres, providing preferential grid access and reduced charges for using European-made chips or cutting energy costs.
Amazon, Microsoft, and Google collectively hold over 60% of the global cloud market. They have sought to address sovereignty concerns: Amazon launched a service hosted entirely in Europe; Microsoft created locally controlled ventures like Bleu and Delos Cloud; Google partnered with Thales-controlled S3NS and OVHcloud.