The European Commission has unveiled a bold strategy to build a 'Sovereign Cloud' infrastructure, aiming to store and process all sensitive European data within the borders of the EU using only European-owned hardware and software.

The move is a direct response to concerns over data privacy and digital sovereignty in an era dominated by US and Chinese cloud providers. The initiative is expected to receive €20 billion in funding over the next five years.

"Data is the lifeblood of our economy, and it must be protected by our laws," said the EU Commissioner for the Internal Market.