The European Union has launched a tender for the development of up to seven so-called “AI Gigafactories.” According to a notice released by the EU Commission on Thursday, this initiative aims to strengthen Europe’s technological sovereignty and establish the continent as a leading hub for artificial intelligence. The ultimate goal is for Europe to become the “AI Continent.”
The program is expected to be supported by industry, combining up to 10 billion euros from EU and national funds. Moreover, it is projected that this investment will mobilize a minimum of an additional 20 billion euros in private capital.
These new AI Gigafactories are designed to significantly expand Europe’s computing capacity. They will provide access to high-performance infrastructure-for the training, optimization, and operation of modern AI models-for startups, small and medium-sized enterprises, industry players, research institutions, and public administrations.
The facilities, as envisioned by the EU, will integrate state-of-the-art AI processors, cloud technologies, software platforms, high-speed networks, and energy-efficient data centers. Furthermore, all applications developed within these Gigafactories must comply with European standards regarding data protection, security, and ethical guidelines.
Consortia or special purpose companies can participate in the tender, bringing together businesses, public bodies, investors, and other partners. The Gigafactories can be built at a single site within a member state, or they can be distributed across multiple locations or even across borders.
Funding will occur in two phases. In the first funding round, up to four projects can receive support of up to 500 million euros each from EU funds. The second round may fund up to three exceptionally powerful projects, each receiving up to one billion euros. Participating member states are required to complement the EU funds with their own financial contributions.
In related developments, the European Commission has signed letters of intent with US chip manufacturers AMD, Nvidia, and Qualcomm. This ensures that the selected consortia will have access to the necessary high-performance hardware.
The application period for the tender runs until November 12th. Following the project selection, slated for early 2027, construction of the first AI Gigafactories is set to begin that same year. The Commission anticipates that commissioning should take place no later than 18 months after the contract signing, potentially by 2028, though if the signature occurs in the second half of 2027, completion could be pushed back to spring 2029.
