The European Union is considering ways to limit the use of U.S. cloud services when member-state governments process sensitive data, CNBC reported on Wednesday.

Two European Commission officials, who asked not to be named, said discussions inside the Commission are under way on measures to limit exposure of sensitive public-sector data to cloud platforms outside the EU. The Commission is set to announce a "Tech Sovereignty Package" on May 27 containing measures to strengthen strategic autonomy in the digital sector.

One official said, "Defining the areas that must be processed only within European cloud infrastructure is key."

The proposal would not impose a blanket ban on foreign companies' cloud platforms in government contracts. Instead, it would restrict use by public institutions depending on data sensitivity. Options are also being discussed that would require a high level of sovereign cloud infrastructure for processing financial, judicial and healthcare data. Private companies are not covered by the package.

In Europe, voices calling for reducing dependence on U.S. cloud companies and switching to homegrown services have grown as friction with the administration of U.S. President Donald Trump has escalated, CNBC said. Under the U.S. Cloud Act enacted in 2018, U.S. law enforcement agencies can request user data from U.S. companies regardless of where the data is stored.