EU seeks funding for seven AI gigafactories

The European Commission has opened a call for tenders to raise over €30 billion ($34 billion) in state and private funding for seven AI gigafactories across the European Union. The plan allocates €10 billion from the EU and member states, with private investors expected to contribute €20 billion through the European High Performance Computing Joint Undertaking.

The facilities are intended to expand Europe’s AI computing capacity and provide start-ups, scale-ups, small and medium-sized enterprises, industry, academia and public authorities with access to advanced infrastructure. Eligible applicants include consortia and special purpose vehicles involving technology companies, cloud providers, public entities and investors, while AMD, Nvidia and Qualcomm have signed letters of intent to supply chips to participating groups.

EU officials say the bloc remains exposed by its dependence on foreign technology providers. Europe currently operates 19 data centers between Spain and Finland, but aims to triple data center capacity within five to seven years as the US and China use economic, regulatory and supply-chain leverage in the sector.

The Commission said bids will be accepted until November 12, with funding distribution expected in early 2027 so construction can begin within the year. Officials also pledged that the projects will follow EU standards on data protection, safety, security and ethics amid concerns about jobs, water use, electricity demand and noise pollution.