The European Union (EU) possesses world-class industrial capabilities across foundational digital connectivity infrastructure, including subsea cables, satellite systems, 5G/fibre networks, and data centres. However, this strength is fragmented and not always backed by strong local operators, leading to dependencies on non-EU providers that create structural vulnerabilities that undermine the EU’s goal of digital sovereignty.
This fragmentation is reflected in Europe’s uneven position across key sectors. Europe’s position is uneven: Subsea capacity is strong, evidenced by the global market leadership of Alcatel Submarine Networks (ASN) and recent state-led consolidation of key operators. In satellite connectivity, the EU is building the IRIS² constellation as a sovereign alternative. Nordic companies like Nokia and Ericsson remain leaders in 5G and fibre equipment, but have been losing market share. European involvement in the rapidly growing data centre market is primarily as a supplier of expertise in sustainable engineering and energy efficiency, rather than as a major operator.
Ultimately, the core challenge, therefore, is not merely one of capacity but of integration: the EU must consolidate and scale a coherent, end-to-end European connectivity offer that can translate control over physical infrastructure into geopolitical leverage and provide a credible, secure alternative for partner countries. To increase the competitiveness of its tech business offer, the EU must focus on strengthening digital infrastructure operators with strategic financial and regulatory support. Further efforts should include promoting cutting-edge innovators, leveraging cross-sectoral strengths like engineering expertise for data centres, reinforcing innovation ecosystems, and supporting enabling regulatory environments for EU connectivity investments.
About the Authors:
Sabine Muscat is a senior policy analyst at the intersection of digital policy, geopolitics, media and democracy. She advises think tanks as well as the public sector and CSOs on international digital policy with a focus on EU-US-China and North-South relations.
Sasha Pearson is a research assistant in ECDPM’s digital economy & governance team.
Chloe Teevan is the head of ECDPM’s digital economy and governance team.