Common Questions

What is the Cloud and AI Development Act?: CADA is the European Commission's proposed legislation for infrastructure-layer cloud and AI sovereignty, implementing a Draghi Report recommendation. Proposed in Q1 2026, practical effect is not expected before 2028.Source: European Commission
When will the EU Cloud and AI Development Act come into force?: No draft text has been published; given the typical EU legislative cycle, practical effect is not expected before 2028.
How does CADA relate to the Draghi report?: CADA directly implements a recommendation from Mario Draghi's 2024 European competitiveness report, which called for structural intervention at the infrastructure layer of the cloud market.

Background

The Cloud and AI Development Act (CADA) is the European Commission's proposed legislation to address infrastructure-layer sovereignty in cloud computing and artificial intelligence. It implements a direct recommendation from Mario Draghi's 2024 competitiveness report and appeared on the Commission's work agenda in Q1 2026. The Act was referenced explicitly in the programme of the Sovereign Tech Europe summit in Brussels on 23 April 2026, alongside the Digital Omnibus Regulation and the Chips Act 2, as one of the primary regulatory instruments for European digital sovereignty.

CADA sits above the operational level of the Commission's existing sovereign cloud procurement framework, which in April 2026 awarded a €180m six-year contract to four provider groupings. The Act is intended to set structural rules for how EU institutions and member states procure and govern cloud and AI infrastructure over the longer term. Japan's government noted alignment between CADA and its own Economic Security Promotion Act during the summit, signalling early international interest in how the legislation takes shape.

Practical effect is not expected before 2028 at the earliest, reflecting the typical EU legislative cycle. No draft text has been published as of April 2026; the Act remains at the political proposal stage, with its scope, definitions and enforcement mechanisms still to be determined through the ordinary legislative procedure.

How the World Sees Them

Japan

Signalled alignment between CADA's infrastructure-sovereignty framing and Japan's Economic Security Promotion Act at the Brussels summit, suggesting the legislation has diplomatic as well as commercial relevance.

European Commission

Frames CADA as the structural complement to operational procurement frameworks; positions it as implementing Draghi's competitiveness agenda rather than creating new rules from scratch.

US technology companies

Watching closely: CADA could set binding criteria for what qualifies as sovereign infrastructure, potentially restricting US-anchored joint ventures from Commission procurement.

European cloud industry (CISPE)

Sees CADA as the legislative instrument that should close the SEAL-level loopholes that let a Google joint venture qualify as sovereign cloud; but sceptical about timeline.