💻EU Cloud Market Struggles: EU Firms Lag at 10% Share

EU Cloud Market Struggles: EU Firms Lag at 10% Share

EU-headquartered companies capture less than 10% of the bloc's datacenter chips, server assembly, and cloud infrastructure markets. This includes only 6% of the datacenter semiconductor market, 7% of server manufacturing and assembly, and 8% of cloud infrastructure. The Cloud and AI Development Act (CADA) aims to triple the bloc's datacenter capacity within 5-7 years. However, Europe faces significant challenges in building a competitive supply chain due to the dominance of Taiwan in contract chip manufacturing, South Korea and the US in memory, and American companies in networking and storage. Servers, driven by AI processing requirements, are now the primary growth driver of the electronics industry, expected to become the largest segment by 2030. Europe needs policies to develop its own industrial ecosystem and capture more of the unprecedented demand for servers, electronic systems, and semiconductor components.