EU Boosts Digital Sovereignty Efforts in 2026 to Reduce Dependencies
The European Union is set to bolster its digital sovereignty efforts in 2026, aiming to reduce dependencies on non-European firms, particularly Chinese supply chains, US digital platforms, and hyperscalers. This push comes as consumer use of generative AI doubles, while enterprise adoption lags behind the USA.
The EU's goal is to gain greater control over its resources, technology stack, and digital services, ultimately enhancing its competitiveness. Despite this, European enterprises are unlikely to fully shift from US hyperscalers in the near future, acknowledging the significant investments and established infrastructure these companies offer.
German companies and organizations, especially those in automotive and electronics sectors heavily reliant on Chinese suppliers, will likely face targeted attention. The German government's 'China+1' strategy, aimed at reducing dependencies, will also remain in focus. Geopolitical tensions, including uncertainty around US policy decisions, will continue to impact European firms in 2026.
While the EU intensifies efforts to achieve digital sovereignty, the shift away from non-European firms will not be immediate. Geopolitical tensions and uncertainty will persist, influencing enterprise planning. Legislative simplification, however, is not expected to significantly reduce enterprise compliance costs.
