EU Pledges $11.5B for Seven AI Gigafactories

The EU is stepping up its push to build sovereign AI infrastructure, with a new funding program to establish up to seven AI gigafactories across Europe.Unveiled by the European Commission (EC) this week, the initiative is pitched as expanding the continent’s access to the computing power needed to train, fine-tune and run advanced AI models. In addition, it aims to reduce overreliance on infrastructure outside of the region.According to the commission, in addition to the $11.5 billion in public funding, the program could attract at least $23 billion in private investment.The commission initially planned to support five gigafactories (industrial-scale plants that produce AI compute, EV batteries and EVs) but increased the target to seven following strong interest from EU member states.Henna Virkkunen, executive vice president for tech sovereignty, security and democracy at the EC, said the call represents a milestone in the continent’s AI ambitions.Related:Schneider Electric, AMD Unveil Blueprint for AI Factory Deployments“Access to the raw scale of computing power within AI gigafactories is a strategic necessity for Europe as AI development accelerates,” she said in a statement.The EC said the new facilities will complement Europe’s existing network of 19 AI factories and will bring together advanced AI processors, software and cloud technology, high-speed connectivity and energy-efficient data center infrastructure.The gigafactories are expected to provide computing capacity to AI startups, scale-ups and small and medium-sized businesses, as well as industrial companies, researchers and public authorities.The project is also intended to reinforce the EU’s broader ambition of becoming an “AI continent,” while ensuring AI systems can be developed under EU data protection, security and ethics regulations.Meanwhile, the European High-Performance Computing Joint Undertaking (EuroHPC JU) and participating member states will jointly procure compute access from the selected facilities.Eighteen member states have signed a joint procurement agreement with EuroHPC JU, including Germany, France, Italy, Spain, Sweden, Poland and Ireland.Chipmakers Sign UpWhile the commission is framing the gigafactories as part of Europe’s push for technological sovereignty, the facilities will not be limited to European hardware.The commission said that while part of that procurement could be directed towards European startups and scale-ups, the consortium building the Gigafactories will be able to procure processors and other hardware from suppliers in Europe and other countries.Related:Nebius Embarks on "Asset-Light" Data Center ModelAt the same time, chipmakers AMD, Nvidia and Qualcomm have signed letters of intent with the commission to ensure companies involved in the projects have access to the hardware required to build out the facilities.The commission’s tender will close on Nov. 12, with successful bidders expected to be named in early 2027. Selected facilities are expected to become operational within 18 months of contract signing.About the AuthorContributing WriterScarlett Evans is a freelance writer with a focus on emerging technologies and the minerals industry. Previously, she served as assistant editor at IoT World Today, where she specialized in robotics and smart city technologies. Scarlett also has a background in the mining and resources sector, with experience at Mine Australia, Mine Technology and Power Technology. She joined Informa in April 2022 before transitioning to freelance work.