EU countries and the UK are embracing open source for technology independence
The EU and the UK are accelerating efforts to reduce dependence on dominant US tech giants by championing open source technologies and digital sovereignty, fostering a new era of tech independence and innovation. Open-source software underpins modern cloud infrastructure, making the two inseparable in Europe’s pursuit of digital sovereignty.
The shift
At the heart of Europe’s strategy is the ambition to reclaim control over digital infrastructure, data and software. This digital sovereignty movement prioritises open source as a foundation, offering transparency, security and autonomy from proprietary US platforms. European governments and enterprises aim to develop open-source AI initiatives and cloud infrastructures that comply with stringent regional regulations such as the GDPR.
The big EU countries – Germany, France, Italy and Spain – are leading the way with policies and public investments that promote sovereign technology ecosystems. Germany’s Schleswig-Holstein has a plan to break free from proprietary software, and more and more other public authorities in the region plan to do the same.
Economically, open source contributes between €65 billion and €95 billion annually in the EU, promising significant job creation and investment returns. Politically, the Digital Markets Act and cybersecurity legislation reinforce digital autonomy as essential for Europe’s future competitiveness.
Draghi’s vision
Mario Draghi’s 2024 report for the European Commission warns that Europe risks falling further behind the US and China without urgent action. Draghi calls for transformative investment – €800 billion annually, or 4-5% of EU GDP – in innovation, green tech, defence and unified capital markets, as well as major regulatory reforms to empower startups and scale-ups. He advocates for ambitious, DARPA-style programmes led by industry experts.
By 2025, only 11% of the recommendations have been implemented due to slow reforms and geopolitical challenges. Nonetheless, the report remains a core reference, shaping key EU strategies like the Competitiveness Compass and Clean Industrial Deal to build a more digitally sovereign and competitive Europe.
The UK’s ambitions and cross-channel collaboration
Post-Brexit UK is committed to digital sovereignty: the UK Compute Roadmap is its long-term plan to transform the national computing ecosystem. It aims to scale UK champions in AI and cloud infrastructure. UK-based companies such as Civo and Nine23 are developing sovereign cloud platforms focusing on data security, low-latency AI applications and government-level accreditations.
The UK and EU collaborate on digital sovereignty despite political boundaries, sharing goals to enhance secure digital infrastructure, AI innovation, and sovereign cloud solutions. Summits in 2025 reaffirmed commitments to joint development, interoperability and trusted partnerships. Initiatives involve AI-powered tools and secure data environments co-developed by UK and EU stakeholders, supported by organisations like techUK, which promote engagement and policy alignment.
Business and investor opportunities
The digital sovereignty shift opens vast opportunities across Europe:
- Businesses supplying secure, transparent, open-source software and cloud services benefit from growing public sector demand and digital transformation
- AI startups and scale-ups, particularly those focused on sovereign computing and compliance-driven innovation, represent promising investment targets
- Sovereign cloud providers are strategically positioned to gain market share as governments and enterprises prioritise data sovereignty
- Investors can leverage public funding initiatives and the rising need for European technology autonomy to back companies driving the continent’s tech independence
Challenges
While Europe’s push to develop a sovereign digital ecosystem is well underway, significant hurdles threaten the sustainability of open-source initiatives.
The rise of generative AI models threatens open source by eroding the foundation of open source software, which could undermine provenance, licensing and reciprocity, as explored in the ZDNet article, which also highlights the irony that the very infrastructure enabling generative AI was born from the shared resources it now depletes.
Additionally, US tech giants increased their lobbying budgets in Brussels, spending a record €151 million in 2025 to influence EU digital policies and slow the growth of European open-source alternatives.
Europe must overcome these pressures to safeguard its digital autonomy and foster a secure, transparent and sovereign open-source ecosystem.
Impact on ESG
European businesses and investors tend to prioritise sustainability more deeply than many of their US counterparts. This shift to digital sovereignty is expected to advance Environmental, Social and Governance (ESG) outcomes simultaneously.
Environmentally, sovereign cloud infrastructures are designed with strict green standards in mind, reducing energy consumption and promoting renewable sources. Socially, strengthening data privacy, security and transparency builds trust and inclusivity across digital ecosystems. From a governance perspective, controlling digital assets locally reduces dependence on foreign entities, enhancing resilience and accountability. Together, these factors mean that Europe’s move towards open source and sovereignty should deliver not only technological autonomy but also better outcomes for the planet and society.
Final thoughts
The EU and UK’s strategic focus on promoting open-source technological sovereignty reshapes the digital landscape, presenting opportunities for businesses and investors aligned with ESG principles. Despite the threats posed by AI and the US tech giants, this shift supports sustainable technological growth, enhances societal trust and improves governance structures – critical factors for long-term resilience and competitiveness.
As Europe continue to prioritise digital autonomy, companies that adopt sustainable practices will likely emerge as leaders in the evolving global tech ecosystem.
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