Directorate-General for Communications Networks, Content and Technology and European Commission 3 June 2026, Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a framework of measures for strengthening Europe’s cloud and AI ecosystem (Cloud and AI Development Act)

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The proposed Cloud and AI Development Act (COM(2026) 502 final), based on Articles 114 and 173(3) TFEU, establishes a comprehensive Union-level regulatory framework aimed at strengthening Europe's cloud and AI ecosystem by addressing the compute capacity deficit and reducing strategic dependence on third-country providers. Key provisions include the Cloud and AI Leadership Initiatives supporting research, innovation, and large-scale deployment; a harmonised data centre acceleration zone regime with streamlined permitting; and a four-tier Union cloud computing sovereignty framework (Union assurance levels 1–4) requiring conformity self-assessment or independent third-party audit as a condition for public sector procurement. The Regulation further mandates Member State risk assessments to determine required assurance levels for public-order-relevant activities, establishes a European public-sector cloud federation (EuroCloud Federation), and introduces Union-added-value award criteria and common procurement mechanisms to foster adoption of sovereign cloud and AI services across the public sector.AI