EU pushes €200 billion AI infrastructure drive

The EU is advancing InvestAI, a plan to mobilise €200 billion for AI projects across Europe, with European Commission President Ursula von der Leyen launching the initiative in Paris on February 11, 2025. The plan includes a proposed €20 billion fund for AI gigafactories, with Four facilities initially proposed and each expected to use about 100,000 advanced processors.

Brussels does not intend to supply the full amount from the EU budget, instead seeking a mix of European programs, national contributions and private capital. The strategy is aimed at reducing reliance on overseas suppliers for cloud computing, advanced chips and other digital infrastructure, while giving smaller companies better access to computing resources through existing AI factories that connect computing centres with universities, researchers, start-ups and established businesses.

Interest in the larger facilities has already produced 76 proposals across 60 locations in 16 EU countries. Selection and financing are now moving into focus, with guidance from the European Investment Bank Group intended to help developers turn early proposals into financially credible projects eligible for possible co-financing.

The investment push is developing alongside changes to AI regulation. The Artificial Intelligence Act entered into force on August 1, 2024, with obligations phased through August 2, 2027, while Digital Omnibus amendments approved on June 16, 2026 postponed some requirements, simplified compliance and preserved the law’s risk-based structure.