The European Commission has opened bidding for up to seven AI gigafactories as Europe tries to strengthen its artificial intelligence infrastructure and compete with the United States and China.
The €30 billion initiative aims to create powerful computing hubs that can train advanced AI models within Europe. The Commission wants to reduce Europe’s reliance on foreign cloud providers and give local companies greater access to AI computing power.
The funding plan combines public and private investment. The European Union and member states would provide around €10 billion, while private investors would contribute the remaining €20 billion.
Each gigafactory would host at least 100,000 advanced AI chips. The facilities would become some of Europe’s largest AI computing sites and could more than double the continent’s available AI capacity.
Europe Wants More AI Computing Power
The project expands on Europe’s existing network of 19 smaller AI factories connected to supercomputers across the region. Unlike those facilities, the new gigafactories would target the development of frontier AI models that require massive computing resources.
The initiative has already attracted strong interest. An earlier call for proposals received 76 responses from companies, research groups, and technology organizations across Europe.
Countries including Germany, France, Italy, Spain, and Poland have expressed interest in hosting the facilities. France has also indicated that it may develop its own gigafactory project.
European officials say access to large-scale computing power has become a strategic priority. Henna Virkkunen, the European Commission’s technology sovereignty lead, described AI computing capacity as essential for Europe’s future competitiveness.
Funding and Supply Challenges Remain
Despite the ambitious plan, much of the funding remains uncertain. The Commission has announced a €30 billion target, but only around €1 billion of its expected contribution has received approval.
The remaining funds depend on negotiations over the European Union’s next long-term budget. This creates uncertainty around the project’s timeline.
The Commission expects construction to begin in 2027, with the first gigafactories becoming operational by mid-2028. The schedule will require quick decisions on funding, locations, and supply chains.
Europe also faces challenges around technology independence. The planned facilities will likely rely heavily on AI chips from companies such as Nvidia, AMD, and Qualcomm.
Can Europe Build AI Independence?
Energy remains another major issue. AI data centers consume large amounts of electricity, and Europe’s higher energy costs could make these facilities more expensive to operate.
Critics argue that more computing power alone will not close Europe’s AI gap. They say Europe also needs stronger AI companies, better semiconductor production, and more investment in research.
Supporters believe infrastructure provides the foundation for future growth. More computing capacity could help startups train AI models, attract talent, and build a stronger European AI ecosystem.
For now, Europe’s AI gigafactory plan represents a major ambition rather than a finished transformation. The EU has outlined a €30 billion vision, but success will depend on securing funding, building the facilities, and reducing reliance on foreign technology.
