Europe Pushes for Faster Cloud Expansion to Unlock €1.2 Trillion in AI-Driven Growth

A new Google Cloud–backed report urges European policymakers to accelerate cloud investment, cut regulatory fragmentation, and build an open AI ecosystem

Europe stands at a critical digital crossroads. A new report released in Munich by Implement Consulting Group in collaboration with Google Cloud argues that the continent must dramatically accelerate its cloud investment and AI adoption to unlock €1.2 trillion in economic growth over the coming decade. The study, Digital Innovation with Control: Clearing the Cloud, launched at the Google Cloud Digital Sovereignty Summit, warns that Europe’s global competitiveness hinges on building world-class digital infrastructure.

The report calls for a unified, forward-looking policy framework that positions cloud technology and AI as the backbone of Europe’s next growth cycle. According to its analysis, the AI value chain alone could contribute €200 billion to European GDP by 2034, with nearly three-quarters of the value coming from AI applications and services. But capturing this potential requires substantial underlying infrastructure—specifically, a massive expansion of cloud capacity.

To support this growth, the study states that Europe must triple its data-centre capacity within five to seven years, a move requiring an estimated €400 billion investment. This expansion, it says, will only be possible if Europe maintains an open, pro-competitive investment environment that welcomes both global and regional cloud providers.

One of the report’s core findings is that digital sovereignty is not a trade-off between innovation and control. Instead, sovereignty emerges from the combination of both. A secure, resilient, and efficient cloud ecosystem—built on choice, interoperability, and high security, is essential if the continent is to set its own digital course while still leveraging world-leading technologies.

Google Cloud’s leadership highlighted the urgency of aligning policy with technological reality. “The EU’s digital future is a transformative opportunity,” said Giorgia Abeltino, Head of Government Affairs & Public Policy, Google Cloud Europe. She stressed that an open, secure, multi-cloud environment grounded in sovereignty principles can enable responsible AI innovation while strengthening resilience and economic growth. Policymakers, she said, should facilitate investment by championing choice and ensuring the development of efficient and sustainable cloud infrastructure across the region.

Implement Consulting Group reinforced this perspective. Martin Thelle, Senior Partner and Head of the Economics Practice, noted that the study illustrates both the enormous economic opportunity and the growing “cloud gap” the continent must close. He added that true digital sovereignty comes when innovation is balanced with control: a framework built on choice, resilience, and scale is crucial to accelerate AI adoption without compromising strategic autonomy.

The report outlines four urgent priorities for European policymakers:

Choice – Keep markets open to trusted global and European cloud providers. Avoid restrictive licensing rules that create artificial lock-in and inhibit innovation.

Speed – Enable large-scale private sector investment within the next five to eight years, a window that will define Europe’s digital competitiveness.

Simplicity – Reduce regulatory fragmentation across EU member states. The report warns against national “gold-plating”: implementing rules beyond EU requirements—which slows both deployment and adoption.

Security – Build a sovereign but open cloud ecosystem with strong cybersecurity, multi-cloud resilience, and clear operational control for European institutions and businesses.

At its core, the report argues that the continent can achieve digital sovereignty only by embracing innovation, not restricting it. With efficient hyperscale data centres, sustainable cloud architectures, and access to advanced AI capabilities, Europe can build the infrastructure needed for long-term competitiveness and technological independence.

The findings underscore a broader shift in European digital strategy: sovereignty no longer means isolation, but smart collaboration, interoperability, and regulatory coherence. As AI accelerates across sectors—manufacturing, healthcare, finance, logistics, The continent’s capacity to scale cloud infrastructure will define its ability to innovate.

Google Cloud, which supports customers in more than 200 countries and territories, emphasized that its AI stack, custom chips, and planet-scale infrastructure are designed to help regions modernize securely. The company’s focus on sovereign cloud solutions aligns with European priorities around data control and cybersecurity.

Implement Consulting Group, known for its economic modelling and digital policy assessments, has worked extensively with the European Commission and global governments. Its latest analysis sends a clear signal: Europe must move decisively, or risk watching other regions seize the AI advantage.

The call to action is direct. Policymakers must provide “cloud clarity now” by crafting a unified, pro-competitive framework that accelerates investment, reduces complexity, and strengthens security. Only then can Europe fully capture the €1.2 trillion economic opportunity waiting on the horizon.