EU aims to build AI gigafactories of its own
The European Commission has officially opened a call for tenders to build seven AI gigafactories across the continent. This initiative targets a total investment of €30 billion, with €10 billion provided by EU and member state public funds and the remaining €20 billion expected from private investors. The project aims to secure European computing independence by creating infrastructure that is not reliant on foreign tech.
Management of the funds rests with the European High Performance Computing Joint Undertaking, an organization created to pool resources for high-end computing. Eligible applicants include consortia and special purpose vehicles formed by cloud providers, public entities, and private investors. Several major chipmakers, including AMD, Nvidia, and Qualcomm, have already indicated their interest in providing the necessary hardware to support these sites.
These facilities will produce advanced AI processors, software stacks, and energy-efficient data centers. Henna Virkkunen, the commission's executive vice-president for Tech Sovereignty, described the effort as a strategic necessity. Current data shows the EU operates 19 major data centers but relies heavily on external providers for critical computing capacity. This dependency leaves the bloc vulnerable to outside economic and political pressure.
Officials view this expansion as vital to ensuring European businesses and public authorities can operate at the technological frontier without risking service continuity or data access by third countries. The commission plans to triple regional data center capacity over the next seven years, though they face stiff competition from markets in the US and China where energy costs remain lower.
Public pushback persists regarding the high environmental cost of such facilities, particularly their heavy consumption of electricity and water. The commission notes that all new infrastructure must comply with existing data protection and safety laws. Interested parties have until November 12 to submit their bids, with the goal of distributing funds and beginning construction in 2027.