EU cloud and AI plan could cost over €100 billion in the next decade

In June 2026 the European Commission unveiled the Cloud and AI Development Act as part of a broader push for technological sovereignty, aiming to triple data-centre capacity and secure AI resources for Europe by 2035. The legislation intends to reduce dependence on the three non-EU hyperscale cloud providers that control more than 70% of the market, while streamlining permitting and encouraging green data-centre development.

A study cited in recent reporting suggests that implementing the plan could cost over €100 billion over the next ten years, a figure that has not been adopted as the official budget. The projected expense raises concerns for businesses, especially smaller tech firms, and public authorities that may face higher procurement and compliance costs. Supporters argue that domestic infrastructure will improve resilience and competition, but policymakers must balance these benefits against the financial burden. The proposal now awaits scrutiny by the European Parliament and the Council of the European Union, where its fiscal implications will be debated.