The Future of Digital Sovereignty

From the phones in our pockets to the platforms that mediate commerce and civic debate, our lives increasingly unfold in digital spaces we neither design nor control. This strategic dependency on non-European powers leaves Europe economically vulnerable, technologically constrained, and at political risk. Given this, it is essential to explore how Europe can move from being a user and regulator of foreign technology to a builder of its own sovereign digital future.

Europe has demonstrated its ability to establish global standards for the digital world, with notable milestones including the GDPR and the AI Act. Yet, this regulatory strength creates a paradox: can Europe truly claim to govern itself if its critical infrastructure and most innovative enterprises are hosted on algorithms and servers beyond its reach? This raises vital questions: How can Europe close the "sovereignty gap" and translate its regulatory ambition into technological capability?. These questions shape the focus of this report: The Future of Digital Sovereignty.

Besides the technological dimensions of AI, 6G, and Edge computing, broader societal, economic, legal, and environmental factors also play a critical role. For instance, how will the "tech talent war" and widening "digital literacy gap" impact Europe's ability to innovate?. What legal frameworks are needed to manage dual-use technologies or secure critical raw materials?. And how will a societal "paradox of identity" affect the political will for pan-European solutions?.

This complex transformation brings new challenges that demand innovative European business models. For example, building Smart Infrastructure requires new ways to manage energy and compute workloads. Achieving Resilient Resource Cycles demands solutions for material and data supply chains. Securing Europe means protecting both critical infrastructure and new domains, such as space. Nurturing Human Capital requires closing the skills gap, while creating Shared Digital Commons is essential to reducing friction across borders.

This report organizes these considerations into three sections: Trends, Exploration, and Ideation. First, 25 current trends across the five key domains are examined to analyze their future impact. Building on this, the five opportunity spaces are identified and analyzed. The final section translates these insights into five innovative business ideas (CORAL, materiOS, Skyrise, Cyberlong, and SMArtroutE), addressing critical areas such as hybrid cloud orchestration, materials discovery, orbital defense, SME upskilling, and payment routing.

• Smart Infrastructure
• Nurturing Human Capital
• Resilient Resource Cycles
• Shared Digital Commons
• Technologies Securing Europe