EU Launches €10 Billion Initiative to Build Seven AI Gigafactories Across Europe

The European Commission has launched a major investment programme to develop seven AI gigafactories across the European Union, a flagship initiative designed to boost Europe's computing capacity and reinforce its position in the global race for artificial intelligence.

Backed by €10 billion in public funding, the programme aims to attract at least €20 billion in private investment, creating a new generation of large-scale AI facilities capable of supporting advanced model development, scientific research and industrial innovation.

Building Europe's AI infrastructure

The planned gigafactories will combine high-performance AI processors, cloud computing platforms, advanced software, high-speed connectivity and energy-efficient data centres.

Each facility is expected to host at least 100,000 next-generation AI chips, providing computing power significantly beyond that of the AI factories already operating across Europe. The infrastructure will support the training, fine-tuning and deployment of advanced AI models for businesses, researchers and public institutions.

Reducing dependence on foreign technology

The initiative forms part of the EU's broader strategy to strengthen technological sovereignty at a time when the global AI market is dominated by companies based in the United States and China.

European policymakers argue that expanding domestic computing capacity is essential to ensuring that European businesses, startups and research institutions have access to the infrastructure needed to develop competitive AI technologies while maintaining control over sensitive data and critical digital capabilities.

Industry-led investment model

The programme is based on a public-private partnership model, with technology companies, investors and public authorities invited to submit proposals to develop and operate the facilities.

Following strong interest from across the continent, the European Commission increased the number of planned gigafactories from five to seven. Applications will remain open until 12 November 2026, with the first selected projects expected to be announced in early 2027. Construction is expected to begin shortly afterwards, with the facilities becoming operational within approximately 18 months of contract awards.

Supporting Europe's AI ecosystem

The gigafactories will complement the EU's existing network of 19 AI factories, expanding access to high-performance computing for startups, scale-ups, universities, research centres and industrial users.

The European Commission sees the new infrastructure as a key component of its ambition to establish Europe as a global hub for trustworthy and industrial AI, supporting innovation across sectors including healthcare, manufacturing, mobility, energy and cybersecurity.

Competition for hosting the facilities

Several Member States are already preparing bids to host one of the seven gigafactories, viewing the projects as strategic investments capable of attracting technology companies, skilled talent and long-term economic activity.

The facilities are expected to become central pillars of Europe's future digital infrastructure while strengthening collaboration between governments, research institutions and private industry.

A new chapter in Europe's AI strategy

The launch of the gigafactory programme marks one of the European Union's most ambitious technology initiatives in recent years.

As demand for AI computing power continues to rise, the Commission hopes the new infrastructure will help close Europe's innovation gap, accelerate the commercialisation of AI technologies and strengthen the continent's competitiveness in an increasingly strategic global market.