# Cloud and AI Development Act (CADA) Canonical URL: https://digital-acquis.eu/initiative/cloud-and-ai-development-act-cada Entry type: initiative Source edition current through: 17 July 2026 (2026-07-17). This is not a page modification date. Status: in progress. A delivered initiative is not necessarily legislation in force. Instrument: Law Date as recorded: 03 Jun 2026 Date kind: date Status note: full date links only to Legislative Initiative artifacts Promised timeline: Planned for Q1 2026. Record content updated: 2026-08-14 ## Previous steps Consultation ## Summary This law will close Europe’s compute gap by tripling data-centre capacity within 5–7 years and meeting economy-wide needs by 2035, underpinning AI development and sovereign cloud services. It will harmonise cloud policy, set minimum criteria (including for a narrow set of highly critical use cases run on highly secure EU-based cloud), and streamline permitting, site designation and access to energy/water, ensuring geographically balanced rollout. The Act will spur R&I in resource-efficient data centres, enable targeted support consistent with State-aid rules, and complement AI Factories/Gigafactories and the Chips Act ecosystem. ## Sources - [Official source]() ## Action items (0; complete published list) ## Citing documents - [State of the Union 2025]() — status: not recorded. The address connects European competitiveness and technological sovereignty with simpler business rules, stronger investment and faster development of digital and clean technologies. It outlines work on startup finance, the 28th regime and the Single Market, alongside AI infrastructure, quantum technology, circular production and industrial acceleration. Energy measures focus on grids and infrastructure bottlenecks. The address also proposes support for independent journalism and media literacy, and expert advice on protecting children online. Institutional cooperation and changes to EU decision-making are presented as further elements of the reform agenda. Source document doc-008, action item 90003: > This will also support our investment in the technologies that will fuel our economy. Clean and digital. Take artificial intelligence. A European AI is essential for our future independence. It will help power our industries and our societies. From healthcare to defence. So – we will focus on the first key building blocks – that's from the Cloud and AI Development Act to the Quantum Sandbox. We are massively investing in European AI Gigafactories. They support our innovative start-ups to develop, train, and deploy their next-generation AI models. When we called on the private sector to join forces with us, the response was overwhelming. And later today I will meet CEOs from some of the largest European tech champions. They will hand over their European AI & Tech Declaration. This is their commitment to invest in Europe's tech sovereignty. And we must also take the same approach on clean tech – from steel to batteries. Europe's clean tech sector must stay in Europe – and we have to take urgent action. - [Commission work programme 2026 + Annex]() — status: not recorded. The 2026 work programme sets out planned legislation and policy initiatives across competitiveness, technology, energy and social policy. It includes changes to company rules, innovation and procurement, together with proposals concerning advanced materials, chips, cloud infrastructure, quantum technology and biotechnology. Other work covers product rules, circularity, energy systems, capital markets and competition procedures. Security and border-management measures sit alongside proposals on jobs, labour mobility, education, digital fairness and audiovisual media. Better regulation and intergenerational fairness are also part of this programme, which records indicative timetables and proposed legal bases. Source document doc-009, action item 100005: > Cloud and AI Development Act (legislative, Article 114 TFEU) - [European Technological Sovereignty and Digital Infrastruction]() — status: not recorded. Source document doc-011, action item 120013: > Calls on the Commission to introduce an EU cloud and AI development act to strengthen European data infrastructure and the promotion of European cloud providers; underlines that this act should aim to actively build a European single market for cloud and AI; Source document doc-011, action item 120033: > calls on the Commission to propose a definition of sovereign cloud and its scope of application in the planned cloud and AI development act; - [One Europe, One Market Roadmap]() — status: delivered. The roadmap organises planned work around simpler rules, a more integrated Single Market, trade, affordable energy and the digital transition. It sets milestones for measures affecting company formation, investment, procurement, products, research and labour mobility. Energy priorities cover grids, infrastructure, security and decarbonisation, while the digital programme includes business wallets, communications networks, cybersecurity, cloud infrastructure, chips and quantum technology. Trade agreements and measures addressing supply-chain dependencies complete the programme. By placing these initiatives in a common timetable, the roadmap connects the policy agenda with specific stages of legislative work and investment projects. Source document doc-013, action item 140048: > Cloud and AI Development Act (Proposal: Q2 2026) Q4 2027 - [Competitiveness Compass]() — status: not recorded. The Competitiveness Compass brings together work on innovation, industrial transition and the conditions for businesses to grow in Europe. Its agenda spans startups, strategic technologies, research and investment, alongside affordable energy, cleaner industry and circular production. Measures on the Single Market, simpler rules, procurement and standardisation accompany this sectoral work. The programme also includes trade partnerships, raw-material supplies, security and preparedness. Skills, labour mobility and quality jobs connect the economic agenda with workforce needs. The programme combines strategies, legislative proposals, investment initiatives and coordination measures across these policy areas. Source document doc-019, action item 180006: > EU Cloud and AI Development Act [Q4 2025 – Q1 2026] - [AI Continent Action Plan]() — status: not recorded. The AI Continent Action Plan combines computing infrastructure, access to data, wider AI use and skills development. It proposes AI Factories and Gigafactories, linked data labs and support for European data spaces, alongside work on cloud infrastructure. Industrial and scientific adoption would be supported through the Apply AI and AI in Science strategies, research funding and innovation hubs. The plan also addresses startup financing, access to markets and the attraction and training of AI talent. An AI Act Service Desk and consultation on regulatory challenges are intended to help organisations understand and meet their obligations. Source document doc-032, action item 310010: > Adopt a proposal for the Cloud and AI Development Act (Q4 2025 - Q1 2026), preceded by the launch of a public consultation (9 April 2025); - [Vision for the European Space Economy]() — status: delivered. Source document doc-041, action item 360030: > Sovereign EU Cloud for Space Data: Commission incentives, via the forthcoming Cloud and AI Development Act and accompanying single EU-wide cloud policy for public administrations, for sovereign EU cloud solutions to reduce space data dependence on non-EU platforms for storage, processing, and distribution. - [Strengthening EU Economy Security]() — status: delivered. Source document doc-069, action item 550031: > Incentivise companies to reduce dependencies in emerging technology areas as part of the upcoming Chips Act 2.0, Quantum Act, Cloud and AI Development Act and Commission Strategy on Open Source. - [The 2026 Annual Single Market and Competitiveness Report]() — status: not recorded. Source document doc-087, action item 610004: > The Commission is putting forward measures to close the innovation gap. The 28th regime (EU Inc.) will provide a single set of rules for companies to set up, operate and grow throughout the EU, creating fertile ground for start-ups, scale-ups and European unicorns. The European Innovation Act will expedite the market journey for innovations across sectors, while the multi-billion Scaleup Europe Fund will partner with private investors to aid company growth. The European Research Area Act will seek to remove barriers to knowledge sharing and promote the 5th freedom. The Digital Networks Act will reduce fragmentation in the Single Market. The Cybersecurity Act, the Quantum Act and the Cloud and AI Development Act will strengthen the sovereignty and security of European technologies and infrastructures. The implementation of the Union of Skills aims to build skills for quality jobs. - [European Tech Sovereignty, accompanied by an EU Open-Source Strategy]() — status: delivered. Source document doc-105, action item 720002: > Increase awareness of the EU sovereign tech solutions available, including by mobilising European, national and regional support networks (such asthe Enterprise Europe Network). This includes providing tools for private and public organisations to assess the sovereignty of their digital value chains, building on existing initiatives and the sovereignty framework introduced by the Cloud and AI Development Act. ## Current developments Latest updates from Digital Policy Alert and Global Trade Alert. - [Cybersecurity regulation in Regulation establishing a framework of measures for strengthening Europe's cloud and AI ecosystem (Cloud and AI Development Act)]() — Digital Policy Alert; source updated: 2026-06-03; relationship: related context. ## Associated policy priorities - [Infrastructure & Strategic Resources]() ## Broader policy context (shared priority; not a direct citation) - [Action Plan on Affordable Energy]() — status: delivered. The Affordable Energy Action Plan seeks to lower energy costs while supporting competitiveness, security and sustainability for households and businesses. Its actions cover electricity bills and supply, gas markets, energy efficiency, completion of the Energy Union, tripartite agreements for industry, security of supply and price-crisis preparedness. The Commission presented the plan as part of the Clean Industrial Deal, and says delivery also depends on measures by EU countries. - [Battery Booster Strategy]() — status: delivered. Battery Booster plans use Innovation Fund and InvestEU support to reinforce the European battery value chain from raw materials to cell manufacturing. Measures include EUR 1 billion in grants for electric vehicle battery-cell projects, EUR 1.5 billion in interest-free Battery Booster Facility loans, and funding of up to EUR 300 million for critical raw-material projects. It also covers strategic-project calls, investment conditions, supply-chain diversification, EU content requirements and research on battery concepts, materials and manufacturing technologies. - [Chips Act 2.0]() — status: in progress. The review will sharpen Europe’s semiconductor strategy for the AI era, addressing gaps in leading-edge capacity and ecosystem resilience. It will prioritise energy-efficient, secure AI chips; streamline State-aid pathways; improve monitoring of supply-chain vulnerabilities and technology-leakage risks; and better coordinate EU-national programmes. Leveraging the Chips Joint Undertaking and EuroHPC, it will back new fabs and advanced packaging lines and tie support to strategic projects. The review aligns with the AI Continent agenda (i.e. powering AI Factories and forthcoming Gigafactories and setting requirements for European AI semiconductors) within a renewed, more coherent EU funding framework. - [Digital Networks Act (DNA)]() — status: in progress. This law will build a true Single Market for connectivity by harmonising authorisations and spectrum policy, enabling cross-border services and a coordinated path to 6G. It modernises the telecom rulebook to spur investment in fibre, 5G and cloud/edge networks, integrates satellite services, and tackles market fragmentation that keeps Europe split into various national markets. It will streamline permits, clarify open-internet rules for innovative services, support copper switch-off and cloud-based network transformation, and target up to a 50% reduction in reporting burdens. A stronger EU governance model will replace patchwork oversight, boosting resilience, security and scale for operators and users. - [Electrification Action Plan]() — status: delivered. This plan will accelerate cost-effective, system-friendly electrification to lower energy costs, boost competitiveness and cut emissions. It tackles supply and demand across industry, transport and buildings, and will run in parallel with a Heating & Cooling Strategy. Delivery focuses on reliability and flexibility, expanding and digitalising grids, scaling storage and demand response, deepening cross-border integration, and encouraging new demand near clean generation. Policy levers will improve the electricity-to-fossil price ratio (i.e. energy taxation, network tariffs, removing non-energy charges) while mobilising financing, manufacturing capacity and skills along the value chain. Progress will be tracked using KPIs, including raising electricity’s share of final energy toward 32–33% by 2030. - [Energy Digitalisation Forum]() — status: forthcoming. EU digitalisation work on energy focuses on deploying digital solutions and European sovereign AI for grid optimisation, efficiency in buildings and industry, and demand-side flexibility. The strategic roadmap also addresses data centres' integration into the energy system and challenges linked to AI in critical infrastructure. It is accompanied by work on AI models for power grids and data sharing between energy and digital stakeholders. - [Energy Union Package]() — status: forthcoming. The EU will deepen its Energy Union to deliver affordable, clean energy through stronger governance and integration. Therefore, the Commission will launch an Energy Union Task Force, publish a White Paper on electricity-market integration, revise the Governance Regulation, and present a Clean Energy Investment Strategy, a Nuclear Illustrative Programme (PINC), and a Fusion Strategy. It will table an Electrification Action Plan, a Roadmap for Digitalisation and AI in the Energy Sector, and a Heating & Cooling Strategy to accelerate electrification, flexibility and efficiency. A revised energy-security framework will enhance stability and resilience, informed by lessons from the energy crisis. - [EU Critical Raw Materials Centre]() — status: forthcoming. The EU will establish the Platform to aggregate industrial demand, coordinate tenders, and secure diversified supplies for strategic value chains. Building on AggregateEU and complementing the Critical Raw Materials Act, the platform will align procurement across sectors, lower transaction costs for SMEs, and leverage EU and national de-risking tools. A dedicated EU Critical Raw Materials Centre will provide the purchasing backbone, organising joint buying for interested firms with Member States, coordinating strategic stockpiles, monitoring supply chains, and designing financial products for upstream projects in the EU and partner countries. - [EU Framework for Simplified Cross-Border Energy Data Exchange]() — status: forthcoming. The Strategic Roadmap for Digitalisation and AI in the Energy Sector, adopted by the Commission on 3 June 2026, lists as a flagship action the establishment of an EU framework for simplified cross-border energy data exchange for smart energy services and AI model training. The Commission says the core challenge is the absence of a coherent EU approach for trusted, cross-border energy data exchange. It says it will coordinate actions to streamline and simplify energy-specific data exchange in order to support cross-border smart energy services and sovereign AI, and that better exchange of energy data can help activate flexibility from electric vehicles, heat pumps, batteries and controllable demand. The roadmap says the work will build on stakeholder recommendations on data exchange for smart energy services published on 20 May. - [EU Open Internet Stack]() — status: not recorded. The Open Internet Stack Initiative will fund development of end-user applications and underlying technologies for European sovereign digital commons. It has over €40 million dedicated within two Horizon Europe calls worth €307.3 million under the 'Digital, Industry and Space' cluster. The calls also support trustworthy AI, data services, robotics, quantum technologies, photonics and virtual worlds. Businesses, public administrations, academia and other entities from Member States and partner countries can apply until 15 April 2026. - [EU Space Act]() — status: in progress. The law will establish a single, harmonised regulatory framework for the safety, resilience, and environmental sustainability of space activities across the Union. It aims to overcome the fragmentation caused by 13 divergent national space laws across Europe, ensuring a predictable internal market for space services and space-based data. The Act introduces uniform authorisation and registration rules, tailored cybersecurity and debris-mitigation obligations, and a common environmental footprint methodology. By providing legal certainty and reducing regulatory complexity, it will strengthen the competitiveness of EU space operators, foster innovation in the New Space sector, and position Europe as a global standard-setter in space governance. - [EuroHPC Amendment for AI Gigafactories and Quantum]() — status: in progress. Proposed changes to the EuroHPC Joint Undertaking would provide a legal basis for AI Gigafactories and broaden its quantum remit. The facilities would support the development, training and deployment of large AI models for researchers, public-sector users, start-ups and industry, subject to access conditions. The quantum provisions cover research, innovation, infrastructure, skills, industrial capability, competence centres and links with classical high-performance computing. - [European Critical Communication System (EUCCS)]() — status: forthcoming. The Commission will propose legislation to interconnect Member States’ next-generation critical communications used by police, civil protection, emergency medical, border and security authorities. EUCCS will set harmonised requirements for operational mobility, strong resilience and strategic autonomy, enabling secure cross-border voice/data, priority services and roaming, including satellite back-up via IRIS². It will modernise national systems, ensure interoperability and encrypted communications, and support crisis coordination from terrorism to large-scale disasters. Governance will link with the Preparedness Union’s all-hazards approach and ERCC, with EU-funded pilots building capabilities using European providers. - [European Grids Package]() — status: delivered. The European Grid Package will fast-track expansion and modernisation of transmission and distribution networks, deepening market integration and lowering bills. It streamlines TEN-E, accelerates permitting — including environmental assessments — and mandates integrated, cross-border planning with effective cost-sharing, focusing on interconnectors and distribution grids. It prioritises digitalisation, flexibility and efficient use of existing assets, while increasing visibility of manufacturing supply needs. An EIB “grids manufacturing package” (≈€1.5 bn) will underpin EU component capacity, and an “Energy Highways” effort will tackle critical bottlenecks. Together, the measures unlock renewables and storage, strengthen security of supply, and support electrification at least cost. - [RESourceEU Action Plan]() — status: delivered. RESourceEU is intended to reduce critical-raw-material supply risks through finance, faster permitting, recycling, diversification and international partnerships. A CRM financing hub aims to mobilise EUR 3 billion within 12 months, while Horizon Europe calls of EUR 593 million and EUR 100 million of blended European Innovation Council finance support its objectives. The plan also backs projects in Greenland and Germany, raw-material matchmaking, stockpiling, export-scrap measures, foreign-investment controls and standards-based markets. - [Smart Meter Regulation]() — status: forthcoming. EU requirements for smart meters are intended to give consumers timely access to consumption data and dynamic electricity-price contracts, while helping networks manage changing supply and demand. The Commission has established interoperability requirements and procedures for non-discriminatory, transparent data access to support customer switching, retail competition and consumer choice. Smart meters also give network operators better information for investment planning and infrastructure management. - [Strategic Roadmap for Digitalisation and AI in the Energy Sector]() — status: delivered. The roadmap would connect digitalisation and AI with energy-system performance, data-centre integration and security. It proposes a model tripartite agreement for data centres, an EU rating scheme, smart-grid indicators, greater smart-meter coverage and AI models for grid management and permitting. It also envisages a framework for cross-border energy-data exchange, risk assessment for solar installations, an Energy Digitalisation Forum, a Fuel Observatory and a Better Energy Data initiative. --- [Reading guide and interpretation notes]() · [Methodology]()