ARTICLE
14 May 2026

EU Tech Sovereignty: Implications For Businesses And Investors Operating In Europe

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A&O Shearman

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A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
The European Commission's Tech Sovereignty Package will introduce sweeping new regulations on AI, cloud computing, semiconductors, and digital infrastructure that will fundamentally alter how businesses operate...
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On May 27, the European Commission will publish its Tech Sovereignty Package, a comprehensive set of new rules on AI, cloud, semiconductors, and digital infrastructure aimed at reshaping how businesses build, deploy, and procure digital technology across Europe. This will influence where billions in public investment are directed.

The measures are extensive. The Cloud and AI Development Act, the Chips Act II, and the first formal EU-level definition of "digital sovereignty" will collectively redefine market access, supply chain requirements, and the regulatory framework for any company providing cloud, hosting, or technology services, or operating or depending on data centers, in the EU. The implications for non-EU investors and providers are substantial.

On Monday, June 1, 2026, our EU technology experts will outline the package’s key provisions, assess its impact on businesses and investors, and share practical guidance on risks, opportunities, and next steps.

The session will cover:

  • how the EU plans to expand AI and cloud infrastructure, including key elements of the Cloud and AI Development Act and the Chips Act II
  • who is in scope: how the Cloud and AI Development Act applies to cloud providers and data center developers
  • how the EU plans to measure 'digital sovereignty,' from cross-border legal exposure (e.g. the US Cloud Act) to supply chain sovereignty
  • new measures to support financing, development, and management of data centers, including a proposed energy-efficiency rating scheme
  • how the package affects non-EU investors and technology providers
  • the steps businesses should take now to prepare for the new regulatory environment.

We are hosting two sessions to accommodate different time zones. Click "RSVP" below to register for your preferred session and share with colleagues who may be interested. Zoom details to follow upon registration.

RSVP

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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