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EU may limit US cloud use for sensitive government data to boost digital sovereignty.

Market News
07 May 2026
CNBC
Neutral
pluang ai news

The European Commission plans to propose rules restricting the use of U.S. cloud platforms for processing sensitive government data across EU countries as part of its upcoming "Tech Sovereignty Package". This move aims to reduce reliance on U.S. providers and enhance Europe's control over critical digital infrastructure, especially for sectors like finance, health, and judiciary. The package, expected on May 27, also includes initiatives to promote European cloud and AI technologies. The proposals still require approval from all 27 EU member states and focus solely on public sector data, not private companies.

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