The shift represents a significant change in European tech strategy, moving from rhetoric about digital sovereignty to concrete spending on European-controlled cloud services, semiconductor manufacturing, and AI capabilities.

Analysts at Forrester report that enterprises across the EU are reconsidering their reliance on American cloud providers and tech platforms, driven by both tariff costs and concerns about data sovereignty and geopolitical risk.

The trend is being supported by government initiatives including the EU Chips Act and various national programs to build domestic tech capacity. While the investment gap with the US and China remains substantial, the tariff situation has created new urgency.