EU shifts AI gigafactory plan to phased tiers

The EU has revised its AI gigafactory plan from five equally massive data centers to a two-tier rollout with four smaller and three larger facilities built in phases. EuroHPC Joint Undertaking confirmed the approach during an information session on Tuesday, June 16, ahead of a formal call for tenders expected this summer.

The change follows the February 2025 pledge by Commission President Ursula von der Leyen to commit €20 billion to up to five AI gigafactories, each with approximately 100,000 advanced AI chips. The initial plan drew 76 expressions of interest from companies across 16 member states, but delays and funding limits have pushed bidding from late-2025 to early 2026 and then to summer 2026.

The EU’s direct contribution is roughly €4.1 billion, matched by host member states, with 65 percent of costs expected from private investors. Only two planned centers can receive funding before 2028. A French consortium led by Scaleway, called AION, has bid roughly $10 billion for one facility with GPU capacity equivalent to more than 288,000 Nvidia H100 chips, while the first gigafactory is targeted for 2027.