Full name: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a framework of measures for strengthening Europe’s cloud and AI ecosystem (Cloud and AI Development Act)

(Link to original text)

Type: Regulation

Objective and key elements:

• Is a key part of the European Commission’s AI Continent Action Plan
• Aims at strengthening the EU’s cloud and AI ecosystem, investment and infrastructure
• Makes it easier and faster to deploy sustainable cloud and data centre infrastructure
• Three main areas:
  • Research, development and innovation: supporting the development of next-generation cutting-edge and sustainable cloud and AI technologies
  • Capacity: advancing the conditions for deploying data centres across the EU
  • Autonomy: a single EU-wide assessment framework for cloud and AI sovereignty and a common EU-level procurement framework
• Addresses data sovereignty and operational continuity concerns, and aims to safeguard public order by making the supply of cloud computing services more resilient, in particular in the public sector

Relevant to: CADA is relevant for multiple entities, such as, cloud computing service providers, AI developers and deployers, Member States and public sector entities procuring cloud computing services, software and AI systems and data centre services.

Status: The proposal was adopted by the Commission on 3 June 2026.

Next steps: The proposal is currently under consideration by the European Parliament and the Council.

Documents:

• The proposal of the Commission is available here.

Guidance:

• European Commission: AI Continent Action Plan – Q&A

(Last updated 5 October 2026)

Implementation in Finland:

The Cloud and AI Development Act is currently a proposal and has therefore not yet been implemented or become applicable in Finland.

As proposed, CADA would take the form of an EU Regulation. Once adopted and applicable, an EU Regulation is directly applicable in Member States and does not require transposition into Finnish law in the same way as an EU Directive. However, complementary national legislation or administrative measures may be required, for example concerning competent authorities, permitting procedures and other national responsibilities established by the final Regulation.

Status: No final EU Regulation has yet been adopted. The legislative procedure is ongoing.

Competent authority: Not yet determined under the final Regulation.

Next steps in Finland: Finnish implementation and administrative arrangements will become clearer as negotiations on the EU proposal progress and the final obligations for Member States are established.

(Last updated 28 September 2026)