EU plans seven AI gigafactories with €10 billion funding

The European Union will fund seven AI gigafactories across the bloc with €10 billion ($11.5 billion), aiming to narrow the technology gap with the U.S. and China. The European Commission said it also wants to draw at least €20 billion in private investments for the projects.

The plan was expanded from five planned gigafactories to seven after strong interest from EU countries. The facilities are expected to combine advanced AI processors, software, cloud technology, high-speed connectivity and data centres, adding to the existing 19 AI factories in various EU countries.

EU tech chief Henna Virkkunen said access to large-scale computing power is a strategic necessity for Europe as AI development accelerates. Consortia or special purpose vehicles made up of technology providers, cloud service providers, public entities and investors can apply, with the tender process closing on November 12.

The Commission expects to announce successful bidders in early 2027, and the facilities are expected to become operational within 18 months of contract signing. AMD, Nvidia and Qualcomm have signed letters of intent to provide chips to groups involved in the gigafactory projects.