Newly drafted EU cloud rules could stop US hyperscaler access to critical tenders
- Upcoming Cloud and AI Development Act could change how hyperscalers win major contracts
- European development, data sovereignty and foreign government exposure could be considered
- Henna Virkkunen expected to unveil changes amid broader push for European sovereignty
The European Union is preparing a new set of rules under its upcoming Cloud and AI Development Act, and it could mean that US hyperscalers might not be able to win public-sector contracts so easily.
Europe's proposed rules could target sectors like banking, energy and healthcare, introducing more factors to consider beyond just price and technical limitations.
Under the changes, companies bidding for those big contracts could also be assessed on whether their software and hardware have been developed in Europe, on the basis of data sovereignty protections, their exposure to foreign government access requests and more.
New EU rules could make it hard for US hyperscalers to win big contracts
These revisions could...
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