The EU Launches a €10 Billion AI Gigafactories Program

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Key Takeaways

1The European Commission has launched a call for applications to build AI data centers in Europe.

2Up to seven AI gigafactories will be funded, with public support of 10 billion euros.

3The projects include facilities for 75,000 to 100,000 AI chips, with funding of up to 1 billion euros.

💡Why it matters — This program aims to strengthen Europe's technological autonomy in the face of American and Asian giants.

A Call for Applications to Transform Europe's Technological Infrastructure

The European Commission has recently launched a call for applications aimed at companies and investors interested in building artificial intelligence (AI) data centers across Europe. This initiative marks a crucial step in the European Union's ambitious project to strengthen its technological infrastructure and reduce its dependence on foreign technologies, particularly those from the United States and Asia.

A Program Supported by Massive Funding

On Thursday, the EU's executive body announced that it is accepting proposals for the construction of up to seven "AI gigafactories." This program is backed by public funding of €10 billion, and total investment is expected to reach €20 billion once private capital is taken into account. This initiative offers companies a unique opportunity to participate in one of the EU's most ambitious technological sovereignty projects.

Two Types of Projects to Meet Different Needs

Interested companies can submit proposals for two types of projects. The first type involves four smaller facilities, each required to be equipped with at least 75,000 AI chips. These projects can receive public funding of up to €500 million. The second type concerns three larger gigafactories, each requiring at least 100,000 chips, with financial support potentially reaching €1 billion.

An Ambitious but Conditional Construction Timeline

Construction of these projects is expected to begin in 2027. However, their deployment will occur in phases, as a significant portion of the public funding still depends on the approval of the upcoming long-term EU budget. Currently, only €2 billion of the promised public funding is available, with the remainder to be negotiated as part of the next EU multiannual financial framework.

Clarity Expected After Months of Uncertainty

This announcement comes after several months of uncertainty regarding the program's funding. When the initial plans for the AI gigafactories were presented last year, the Commission mentioned mobilizing €20 billion, without specifying the breakdown between public funding and private investment. This ambiguity left potential bidders seeking more clarity.

Collaboration with American Tech Giants

Although some procurement criteria may favor European companies, the Commission has already taken steps to ensure access to the necessary hardware. It has signed letters of intent with American chip manufacturers such as Nvidia, AMD, and Qualcomm. These agreements aim to ensure that selected bidders can obtain the essential components for building the facilities.