DIGITALEUROPE

What the Commission proposes

The European Commission proposes the Cloud and AI Development Act to establish a framework of measures aimed at strengthening Europe's cloud and artificial intelligence ecosystem. The initiative focuses on three pillars, which include research and innovation for greening infrastructure, industrial investments to triple EU data processing capacity, and actions to increase secure data processing capacities for cloud providers in the EU. Ultimately, the proposal seeks to address infrastructure gaps, reduce critical dependencies on non-European providers, and enhance the Union's digital sovereignty and competitiveness.

• Addresses the EU gap in cloud and AI infrastructure capacity through three distinct pillars.
• Promotes research and innovation to accelerate sustainable cloud and AI computing technologies.
• Aims to triple the EU data processing capacity over the next 5 to 7 years via industrial investments.
• Introduces measures to increase secure data processing capacities for high-critical use cases.
• Establishes common criteria for sovereign cloud computing services to reduce extraterritorial dependencies.
• Promotes open-source solutions and joint public procurement activities across the public sector.

Summary written by AI from the Commission's document.

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1. They position Europe not just as a consumer of advanced digital technologies but as a global hub for trusted, sovereign and scalable digital infrastructure capable of shaping the standards, capabilities and markets of the next technological wave. • Consistency with existing policy provisions in the policy area The proposal is consistent with the rules on switching between data processing services introduced by the Data Act. By enabling switching and removing key sources of vendor lock- in, the Data Act seeks to ensure that cloud computing service providers in the EU compete on quality, innovation, and price. It seeks to enable cloud users to freely choose the provider that best meets their needs and combine offers of different providers in a multi-cloud approach.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 4 (EN)

2. The national cloud and AI strategies should also be aligned with the associated digital targets set under Decision (EU) 2022/2481 (23), in particular on the adoption of cloud computing services, big data and AI by at least 75% of Union enterprises for their business operations, and the deployment of at least 10 000 climate-neutral highly secure edge nodes in the Union, 23 Decision (EU) 2022/2481 of the European Parliament and of the Council of 14 December 2022 establishing the Digital Decade Policy Programme 2030 (OJ L 323, 19.12.2022, p. 4, ELI http://data.europa.eu/eli/dec/2022/2481/oj).

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3. In its conclusions on the future of EU digital policy of 21 May 2024 (32), the Council of the European Union confirmed the relevance and importance of achieving this common approach by inviting the Commission to continue its support for the development of interoperable public digital services and the cross-border interconnection of public administrations’ infrastructure, including cloud and edge infrastructures, to increase their resilience, efficiency and sustainability. To achieve this common approach, it is necessary to establish the European public-sector cloud federation (‘the EuroCloud Federation’). The EuroCloud Federation should bring together national and European cloud initiatives that provide highly trusted and secure public-sector cloud capabilities and facilitate the sharing of such capabilities between Union entities and public-sector bodies.

   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE..., page 33 (EN)

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What the Commission proposes

The European Commission proposes the EU Kids Act regulation to establish a uniform digital environment for children across the European Union. The proposal introduces harmonized age limits, restricting autonomous account creation on social media and video sharing platforms for children under 15, with parental involvement allowed for older minors. It also sets out security-by-design requirements for online services, video sharing platforms, online games, AI companions, and app stores. Furthermore, the regulation establishes proportionate, privacy-compliant age-verification frameworks and harmonized enforcement mechanisms to prevent market fragmentation.

• Establishes a single EU-wide digital age limit and restricts autonomous account creation on social media and video sharing platforms for children under 15.
• Sets out security-by-design requirements for social media, video platforms, online games, AI companions, and app stores.
• Introduces proportional and privacy-respecting age-verification criteria and safeguards.
• Defines a structured enforcement framework relying on existing structures with expedited procedures.
• Builds on existing EU rules such as the Digital Services Act and the Artificial Intelligence Act to prevent regulatory fragmentation in the single market.

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What the Commission proposes

The European Commission is preparing an initiative to establish common Union minimum performance standards for data centres located in its territory. Building on existing reporting and rating schemes under the Energy Efficiency Directive, the proposed regulation aims to phase out unsustainable practices and technologies in new or retrofitted facilities. The initiative seeks to address rising energy and water consumption, limited waste heat reuse, and regulatory fragmentation across Member States. An impact assessment is planned for late 2026, with a legislative proposal anticipated in the second quarter of 2027.

• Establish common EU minimum performance standards for data centres regarding energy efficiency, water use, waste-heat reuse, and grid services.
• Form the third step in the EU sustainability framework for data centres, following the 2024 reporting scheme and the 2026 rating scheme.
• Prevent divergent national approaches and reduce regulatory fragmentation across Member States.
• Improve sector competitiveness and reduce operational costs by cutting energy and water waste.
• Support energy system integration by aligning data centre operations with power grid and heat network needs.
• Prepare an impact assessment in Q4 2026 to support the drafting of the legislative proposal for Q2 2027.

What is asked: The consultation aims to collect in-depth evidence, information, data and feedback from stakeholders on the need for and feasibility of minimum performance standards for data centres in the EU, the most appropriate way to establish them, which indicators should have standards, and what thresholds should be set.

Summary written by AI from the Commission's document.

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1. This sector touches upon two important EU objectives, namely the Union’s technological sovereignty and the Union’s energy resilience and security. Expanding computing capacities and increasing the number of data centres on the Union’s territory is essential, but it also poses challenges, not only in terms of increasing energy consumption but also for electricity grids, carbon emissions and environmental resources such as water. In response, the EU’s digital strategy emphasises the need for highly energy-efficient and sustainable data centres. As highlighted by the Draghi report on EU competitiveness, using energy more efficiently makes it possible to cut costs, which is vital for the competitiveness of European industries. The Energy Efficiency Directive (EU) 2023/1791 (EED) requires to promote energy efficiency and sustainability in data centres.

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2. Problem the initiative aims to tackle As highlighted by the Draghi report and the AI Continent Action Plan, expanding data centre capacity in the EU is essential for fostering AI innovation, accelerating digitalisation, boosting EU competitiveness across industries and supporting a mature data economy. To ensure this, several sustainability challenges need to be tackled: 1. rising energy and water consumption 2. limited waste heat reuse and energy system integration 3. the lack of a framework guiding data centres’ sustainability efforts 4. the lack of regulatory convergence between countries 5. competitiveness and affordability concerns 6. barriers to innovation and uptake of clean technologies Basis for EU action (legal basis and subsidiarity check) Legal basis The legal basis for this initiative is Article 194(2) of the Treaty on the Functioning of the European Union.

   Establishment of common Union minimum performance standards for..., page 1 (EN)

3. rating scheme and label to promote best practices (Delegated Regulation (EU) 2026/7000) 3. minimum performance standards phasing out the worst technologies and practices The proposed standards will be reviewed regularly. This will ensure that they follow technological developments and the state of the art for the design and building of new data centres. C. Likely impacts Setting minimum performance standards for data centres in the EU should bring multiple benefits, including: • reducing the energy consumption and environmental footprint of data centres in the EU by ensuring that all new or retrofitted data centres meet essential benchmarks for energy efficiency, water usage and other selected sustainability criteria. • improving the sector’s competitiveness by making better use of energy and water, thus reducing operational costs.

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What the Commission proposes

The European Commission proposes a revision of EU public procurement rules through a new regulation that repeals the existing 2014 directives on public procurement, utilities, and concessions. The initiative aims to modernize and simplify rules, reduce administrative burdens, and enable preferences for European products in strategic sectors to secure supply chains and add EU value. It also amends multiple sector-specific regulations and directives containing procurement provisions to improve coherence and transparency. Furthermore, the proposal addresses high administrative burdens and legal uncertainty identified in previous evaluations regarding public buyers and businesses.

• Revises and replaces Directives 2014/23/EU, 2014/24/EU, and 2014/25/EU with a single Public Procurement Act regulation.
• Enables preference for European products in strategic sectors to ensure security of supply and EU added value.
• Aims to modernize and simplify rules, specifically considering EU start-ups and innovators.
• Amends various sector-specific regulations and directives that contain public procurement provisions.
• Addresses administrative burdens and legal uncertainty that currently affect public buyers and businesses, including SMEs.

Summary written by AI from the Commission's document.

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1. Overall, the comments highlighted the complexity and diversity of views on the potential impacts of a digital public procurement marketplace, and the need for a careful and nuanced approach to its design and implementation. All other respondents A digital public procurement marketplace is expected to have several impacts, including the provision of tools for monitoring and enforcing labour standards and other obligations, such as cross-referencing of data. Many respondents emphasize the importance of excluding operators that do not respect their obligations, including those that engage in tax evasion or avoidance, and creating an EU list of excluded actors. Additionally, digitalisation is expected to improve transparency, reduce administrative burdens, and increase access to procurement opportunities for SMEs and cross-border transactions.

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2. For example, one respondent stated that "A single centralised system at EU level would further discourage economic operators and make the system even more complex for everyone." Another respondent suggested that "A Portal Guide would increase transparency and ensure consistency of data, making it easier for economic operators and contracting authorities to work." Overall, the comments highlighted the need for a balanced approach that takes into account the diverse needs and interests of different stakeholders. EU companies and business associations EU companies and business associations expressed a range of views on the potential impacts of a digital public procurement marketplace. Some emphasized the potential benefits of improved digitalization, including increased transparency, reduced administrative burdens, and enhanced access to procurement opportunities.

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3. 431 • PwC(2026), Assessment of policy options on digital procurement, Analysis of costs and benefits, Publications Office of the European Union, 2026, (publication pending). • SILO (2026), SME Participation in EU Public Procurement: Evidence from TED (2018-2023), Publications Office of the European Union, 2026, (publication pending). • Titl, V., & Schotanus, F. (2025), Onderzoek naar een nationale dataspace voor overheidsopdrachten, Utrecht University, February 2025 (https://research- portal.uu.nl/en/publications/onderzoek-naar-een-nationale-dataspace-voor- overheidsopdrachten). • Wainikka, Ch. (2026), Intellectual Property in Public Procurement, Country comparisons and impact on companies, Publications Office of the European Union, 2026 (forthcoming). • World Bank (2025), European Union:

   COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT REPORT..., page 432 (EN)

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