EU €10 Billion Initiative to Build AI Gigafactories..
EU launches AI Gigafactories call to boost Europe's computing capacity and unlock more than €30 b in investment
The European Union has opened a call for proposals to establish up to seven AI Gigafactories across Europe, marking a significant step in its drive to strengthen technological sovereignty and position itself as a global leader in artificial intelligence.
Backed by as much as €10 billion in combined EU and national funding, the initiative is expected to attract at least €20 billion in private-sector investment. The facilities will provide the large-scale computing infrastructure needed to train, fine-tune and run advanced AI models, supporting start-ups, scale-ups, SMEs, industrial companies, research institutions and public-sector organizations.
The new AI Gigafactories will integrate cutting-edge AI processors, software and cloud platforms, high-speed connectivity and energy-efficient data centers. Working alongside Europe’s existing network of 19 AI Factories, they are intended to bolster the continent’s technological resilience, competitiveness and strategic independence.
The European Commission said the facilities will enable the development of advanced AI systems using European-based infrastructure while ensuring compliance with EU requirements on data protection, safety, security and ethical standards.
Eligibility and Project Structure
Applications are open to consortiums or Special Purpose Vehicles (SPVs) bringing together businesses, public organizations, investors and other stakeholders.
Projects may be located within a single EU member state, either at one site or across multiple locations. Cross-border developments spanning several member states through distributed computing facilities will also be eligible.
All submissions will be assessed through a competitive evaluation process.
Funding Model and Capacity Targets
The program will be administered through the European High Performance Computing Joint Undertaking (EuroHPC JU) in partnership with participating member states. Eighteen countries have joined the procurement initiative: Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Poland, Portugal, Slovakia, Spain and Sweden.
Funding will be delivered through two development phases and two project categories.
Under the first category, up to four projects can receive as much as €100 million in EU funding during the initial phase and up to €400 million more in the second phase. These facilities must initially deploy at least as many of the most advanced AI processors as Europe’s strongest existing AI Factory and expand capacity to at least three times that level in the second phase.
The second category will support up to three projects, each eligible for up to €200 million in initial EU funding and a further €800 million during phase two. These larger facilities must start with up to twice the processor capacity of Europe’s most powerful AI Factory and expand to at least four times that scale during the second phase.
Participating member states will match EU funding contributions, with public investment intended to stimulate the substantial private capital needed to build and operate the facilities.
Hardware Strategy
Because advanced AI systems rely on highly specialized computing hardware, securing access to leading processor technologies is a key part of the initiative.
Consortiums will be able to procure hardware from suppliers based in Europe and other like-minded countries during either development phase. The Commission said part of the procurement process may be reserved for European start-ups and scale-ups to help strengthen the continent’s digital supply chain.
In addition, following the recent EU-US trade agreement, the European Commission has signed letters of intent with AMD, NVIDIA and Qualcomm to help ensure participating projects can access the hardware required for deployment.
Timeline
The call for proposals will remain open until 12 November 2026.
After evaluation by EuroHPC JU, funding decisions are expected in early 2027. Framework agreements and contracts will then be finalized, allowing construction to begin later that year.
The selected AI Gigafactories are expected to become operational within 18 months of contract signing.
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