EU proposes Cloud and AI Development Act with four sovereignty levels

The EU has proposed the Cloud and AI Development Act (CADA), establishing a four-level sovereignty framework for cloud services used by public-sector organizations, with defense, national security, justice and law enforcement workloads required to run at the highest assurance levels. Defense officials from eastern and Nordic member states push back, warning the rules could limit access to US hyperscaler AI services and complicate NATO interoperability.

• CADA sets four sovereignty levels for EU public-sector cloud services
• AWS, Microsoft and Google control roughly 70% of Europe's cloud market
• EU defense officials warn of NATO interoperability risks
• The act allows exceptions where compliant sovereign services don't exist