Legislative developments
16 August 2026
Proposal for the Cloud and AI Development Act (CADA)
Legislative developments
16 August 2026
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The Commission has adopted a proposal for the Cloud and AI Development Act (CADA) with the aim of strengthening the EU's cloud and AI ecosystem, investment and infrastructure.
The ongoing deployment of AI factories and AI gigafactories aims to provide broad access to high-capacity, next-generation computational resources for European businesses and researchers requiring AI capabilities. To complement this, the EU needs to expand its cloud and data centre capacity to support the wider deployment and diffusion of AI.
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The CADA will reinforce energy-efficient data centre capacity, while complementing the Apply AI strategy to boost the adoption of artificial intelligence and cloud across Europe.
It will focus on three objectives:
- Research, development and innovation: supporting efforts to deploy the next generation of cutting-edge and sustainable cloud and AI technologies
- Capacity: accelerating the conditions for deploying data centres across the EU, focusing on facilities that enhance essential public sector functions
- Autonomy: introducing a single EU-wide assessment framework for cloud and AI sovereignty, accompanied by a public sector adoption mechanism
The CADA complements other new initiatives, including the Chips Act 2.0 and the EU Open Source Strategy, in contributing to a more competitive, secure and resilient European digital economy.
Read more information:
Cloud and AI Development Act (CADA)
Cloud computing
AI Continent Action Plan
Refer to the official European Commission webpage for additional information and background.
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