The European Commission's AI Continent Action Plan emphasizes the need to significantly expand cloud and data center capacity across the EU to support AI and digital infrastructure goals. The Cloud and AI Development Act aims to incentivize investment and triple current capacity within seven years. The insurance sector supports this approach but warns against restrictive sovereignty measures that could exclude non‑EU providers without viable alternatives. It advocates for flexible, risk‑based cloud definitions and support for hybrid strategies. The sector stresses that capacity‑building, not protectionism, is key to achieving digital sovereignty while maintaining innovation, competitiveness, and international interoperability.