How the European Commission aims to promote the EU quantum sector through the Cloud and AI Development Act

Much of the attention on the European Commission’s recent proposal for a Cloud and AI Development Act (“CADA Proposal”) has focused on its proposed cloud sovereignty framework, the implications for cloud service providers and public sector cloud use, and the mechanisms intended to encourage data centre development in the EU (we discuss those aspects of the CADA Proposal in more detail in our post here).

But the CADA Proposal also contains several express references to the development of the EU quantum computing sector, which suggests that quantum computing may be embedded within the EU’s wider cloud, AI, and data centre strategy, and that the Commission may promote the development of the technology in that context (rather than treating it as a separate technology policy issue). That approach is consistent with the Commission’s July 2025 Quantum Strategy and its expected proposal for a Quantum Act later this year, both of which focus on building the industrial base for quantum computers in Europe (we describe the Quantum Strategy and the likely themes of the forthcoming Quantum Act in our prior post here).

In this post, we outline the two main mechanisms through which the CADA Proposal would support the development and deployment of quantum computing in Europe, in advance of the Quantum Act.

1. EU- and Member State-level Cloud and AI strategies have a specific mandate to develop and invest in the European quantum sector

The CADA Proposal would make quantum development a required element of Member State cloud and AI planning. Article 7 would require each Member State to adopt a national cloud and AI strategy within one year of the Regulation’s entry into force. Those strategies would need to include measures to invest in “high-intensity computing infrastructure,” including quantum computers, as strategic national and cross-border assets supporting research, development, and industrial AI deployment. Formulated this way, the Proposal does not treat quantum computing development as a separate policy issue. Instead, it acknowledges the value of quantum computing as an important tool for developing other frontier technologies, and includes it within the same infrastructure planning framework as other assets used to develop compute capacity in the EU.

The Proposal would also establish “Cloud and AI Leadership Initiatives” that contain eight “Operational Objectives” the European Commission and Member States (alongside any “joint undertakings”) are tasked with implementing. The CADA Proposal requires these operational objectives to be implemented through “large-scale, cross-sectoral initiatives addressing major technological and industrial challenges of strategic relevance for the Union,” (“Grand Challenges”). Two are directly relevant to quantum computing:

• Operational Objective 1—related to supporting the development and deployment of advanced data centre technologies: Expressly requires the Commission and Member States to “promote the integration of emerging quantum computing technologies for cloud and AI computing infrastructure operations,” similar to the requirements for Member State cloud and AI development strategies. The corresponding Grand Challenge 1 emphasizes the use of quantum computing technologies for cloud and compute infrastructure as a means of improving the Power Usage Effectiveness of cloud and edge data centres, and for improving the resilience of data centres’ value chain and supply by using EU-manufactured quantum technologies.
• Operational Objective 2—requiring support for “the development and deployment of cloud computing stacks supporting the Union’s technological autonomy”: Requires the development of “AI-optimised servers and baseline software based on processors, accelerators, and quantum accelerators designed and manufactured in the Union.” Grand Challenge 2 refers more specifically to building AI servers powered by semiconductors and quantum technologies designed and manufactured in the EU for distributed cloud and AI computing.

1. 2. Data centre development projects with a quantum computing focus can be designated as “strategic projects” and obtain associated benefits

The Proposal would create a route for data centre projects to obtain “strategic project” status, where they meet at least two of five listed criteria. One of these criteria is expressly quantum-related: it covers projects that “support[] the integration of chips, processors and accelerators, servers, or quantum computers designed and/or manufactured in the Union into data centre systems or data centre facility management.”

The benefits of designation as a strategic project could be material, and are intended to encourage data centre operators to consider the integration of EU-designed or manufactured quantum computers into their systems. Strategic data centre projects would, under the CADA Proposal, be eligible for the proposed EU “competitiveness seal” under the proposed European Competitiveness Fund, and could therefore be eligible for funding under that programme and, potentially, streamlined permitting processes.

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Covington’s Technology Regulatory and Public Policy Practices will continue to monitor developments related to the CADA Proposal, and those related to the EU quantum computing sector. If you have any questions about the issues raised in this blog, or are interested in engaging with the legislative process, please do not hesitate to contact us.