Digital innovation with control – Clearing the cloud

AI technology is a decisive source of competitiveness and economic prosperity. Capturing the benefits of AI is vital for Europe to boost its innovation. Making digital innovation play to Europe’s strengths requires a substantial build-out of cloud in Europe.

An Implement Consulting Group study, developed in collaboration with Google Cloud, examines the options for Europe to boost its digital innovation and remain in control of its digital development. Insights from the study emphasise that digital sovereignty is not a choice between innovation and control, but the convergence of the two.

Key findings of the study:

• Future EU competitiveness depends on AI adoption and innovation. Widespread AI adoption could boost the EU’s GDP by over EUR 1.2 trillion, and accelerated AI innovation could unlock a further EUR 450 billion.
• Europe’s strongest growth potential lies in the application layer of generative AI, not in replicating global infrastructure or models.
• A step-change in European cloud investment is required – approximately EUR 400 billion in new data-centre capacity by 2030. This will best be achieved if Europe maintains an open investment climate.

Maintaining freedom of choice for European businesses in selecting cloud providers is critical: restricted access to the most powerful AI tools and applications puts EUR 800 billion of European productivity gains at risk. This underscores the importance of policy objectives for a sovereign digital Europe.

To achieve digital sovereignty, European policy must pursue two key objectives:

• Choice: Ensure a competitive market for digital technologies — the strongest engine of innovation.
• Speed: Capture the AI innovation opportunity within the next 5–8 years.
  
  

How to get there: a simple, single, and open digital market

To build an innovative, secure, and well-protected cloud under European control, the EU must be:

• A simple market – Simplify and streamline digital rules to accelerate innovation.
• A single market – A unified cloud market is more attractive for investors and fosters AI adoption and innovation.
• An open market – Access to leading technologies is essential for Europe’s competitiveness and AI leadership.