The European Commission has proposed the Cloud and AI Development Act (CADA), a legislative initiative intended to strengthen Europe's strategic autonomy in cloud and AI infrastructure and reduce excessive dependence on non-EU technology providers.

The proposal would establish a common European framework for assessing cloud and AI sovereignty and introduces different levels of sovereignty for relevant infrastructure and services. It also addresses public-sector procurement, investment and the development of European cloud and AI capabilities. The proposal could have significant implications for major cloud providers that serve European public-sector and sovereignty-sensitive customers, although its ultimate effect will depend on the final legislation and its implementation.

CADA is currently a legislative proposal and should not be treated as an immediately applicable market-access restriction.