Data centres are key to innovation in artificial intelligence (AI). Data centres are needed to access on-demand and scalable computational power and to deploy centralised digital services. Both are key in the lifecycle of large AI models, as their training and execution are intensive and centralised. Increased EU data centre capacity would benefit AI innovation, as would research and innovation to achieve resource optimisation and the decentralisation of computational tasks. Weak EU AI development could further hurt EU competitiveness across industries by slowing digitalisation. Data centre capacity in the European Union is insufficient. The lack of capacity negatively impacts EU innovation, hindering economic growth. Studies suggest that despite comparable GDP, the United States has twice Europe's share of global data centre capabilities, and just three US-based companies account for 65 % of the EU cloud services market, which relies on data centres. Excessive dependence on non-EU capacity threatens the competitiveness of EU companies. EU data centre capacity-building is also hindered by legal and financial obstacles, as well as a lack of resources. EU-based secure cloud and AI computing services are lacking for highly critical use cases. The EU's need for a sovereign digital transition is increasingly salient in the face of geopolitical shifts and growing global competition for innovation. Providers and customers lack legal clarity however, hindering enhanced availability and the use of EU-based highly secure cloud and AI offers. Member States did not manage to reach agreement in recent efforts to define the requirements for a sovereign cloud through a proposed European cybersecurity certification scheme for cloud services (EUCS). Source : © European Union, 2025 - EP Read more