Cloud and AI – What do Austria and the EU need to succeed digitally?

Introduction

In recent years, Europe’s digital landscape has undergone rapid transformation. Cloud technologies, data spaces, and artificial intelligence (AI) are now the central pillars of digital value creation. Yet despite strong research environments and industrial excellence, Austria, the German-speaking region (Germany, Austria, Switzerland, Liechtenstein – also known as 'DACH') and the EU as a whole are lagging behind the world’s leading tech nations. The key question is: What do we need to build sovereign, innovation-driven digital infrastructures?

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1. The starting point: Fragmentation instead of connectivity

While global hyperscalers dominate the cloud market, Europe is still fighting for digital sovereignty. Many critical infrastructures lie outside European legal jurisdictions. Companies hesitate to adopt cloud solutions due to regulatory uncertainty, security concerns, and dependency risks.

Data is also often difficult to access. Cross-sector or cross-border data cooperation remains rare. AI applications frequently rely on non-European datasets – and European AI startups are hitting growth limitations.

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2. Cloud infrastructure: build locally, think openly

A strong digital economy requires scalable, trustworthy cloud infrastructures. This doesn’t mean doing everything alone — it means thinking European: with open standards, interoperable architectures, and federated models like GAIA-X.

What is needed:

• Sector-specific cloud offerings (e.g., health, industry, public administration)
• Public procurement that supports trusted providers
• Harmonised cybersecurity and data protection standards
• EU-wide certifications and compliance mechanisms

Austria can take a pioneering role here – as an innovation space for European cloud solutions.

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3. Data spaces: From silo mentality to cooperation

Data is not the new oil — it is the new soil. Only when we connect and analyse data can real value be created. European data spaces are therefore key. Initiatives like the European Health Data Space or Catena-X must be scaled more quickly.

This requires:

• Governance models that build trust (usage control, data sovereignty)
• Secure platforms for data exchange
• Incentives for companies to share non-sensitive data
• Public institutions should lead by example – as data providers and data stewards.

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4. Artificial Intelligence: Trustworthy and scalable

Europe’s AI strategy rightly emphasises ethics and responsibility. But regulation alone is not enough. The AI Act provides an important framework, but it must be implemented in a practical and innovation-friendly way.

Challenges include:

• Access to high-quality, domain-specific data
• Compute capacity (GPUs) for training large models
• AI literacy in public administration and SMEs
• Aligning international standards with European values

Austria can serve as a test market for trustworthy AI – in health, mobility, and government.

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5. Policy & governance: Enabling scalability

Digital sovereignty doesn’t mean isolation – it means the ability to actively shape the digital future. Public institutions, research, and industry must work together in a coordinated way.

What is needed:

• Smart, risk-based regulation
• Open platforms instead of isolated data silos
• Support for interoperable, scalable solutions
• Innovation support for SMEs and deep tech

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Conclusion: Act now, together

Europe’s digital future won’t happen on its own. But it is achievable. Austria and the DACH region have all the prerequisites: know-how, infrastructure, values.

But to not only keep up, but lead, we must:

• Invest in European cloud infrastructure
• Actively shape data spaces
• Scale trustworthy AI
• Create enabling framework conditions

Now is the time to build Europe’s digital foundation – together and with determination.