EU aims for seven AI gigafactories with €10 billion plan in race with US, China

EU AI gigafactories will combine processors, cloud tech and data centres, adding to 19 existing AI hubs

The European Union will fund seven artificial intelligence gigafactories across the bloc with €10 billion ($11.5 billion) as it accelerates efforts to narrow the technology gap with the United States and China, the European Commission said on Thursday.

The Commission said it aims to attract at least €20 billion in private investment for the projects. The plan was expanded from five planned gigafactories to seven following strong interest from EU member states.

The facilities will combine advanced AI processors, software, cloud technologies, high-speed connectivity and data centres. They will complement the bloc's existing 19 AI factories located across several EU countries.

"Access to the raw scale of computing power within AI Gigafactories is a strategic necessity for Europe as AI development accelerates," EU technology chief Henna Virkkunen said in a statement.

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Public-private partnerships

Technology providers, cloud service companies, public bodies and investors will be able to form consortia or special-purpose vehicles to apply for participation in the projects.

The tender process will close on November 12, with the European Commission expected to announce successful bidders in early 2027.

The gigafactories are expected to become operational within 18 months of contract signing.

Chipmakers including AMD, Nvidia and Qualcomm have signed letters of intent with the Commission to provide processors for groups participating in the projects.