EU Earmarks €10 Billion for Seven AI 'Gigafactories' to Rival US and China

The European Union is committing €10 billion ($11.5 billion) in public funds to develop seven artificial intelligence "gigafactories," a strategic initiative aimed at closing the technology gap with the United States and China. The European Commission, which announced the plan on Thursday, said it also seeks to attract an additional €20 billion in private investment for the projects.

Strategic Investment

The plan represents a significant scaling up of the EU's ambitions in AI infrastructure, increasing the number of planned facilities from five to seven following strong interest from member states. These gigafactories are designed to be comprehensive hubs, integrating advanced AI processors, software, cloud technology, high-speed connectivity, and data centers. They will supplement 19 smaller AI factories already operating across the bloc.

"Access to the raw scale of computing power within AI Gigafactories is a strategic necessity for Europe as AI development accelerates," EU tech chief Henna Virkkunen said in a statement. The initiative is a core part of the EU's effort to enhance its technological sovereignty and reduce its reliance on foreign technology infrastructure.

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Industry Collaboration and Timeline

Major US semiconductor firms, including AMD, Nvidia, and Qualcomm, have signed letters of intent to provide chips to the groups involved in the projects, according to the Commission. This signals a key collaboration between the EU's public-sector goals and established global technology providers.

The tender process for consortia—comprising technology suppliers, cloud service providers, public entities, and investors—will close on November 12. The Commission expects to announce the successful bidders in early 2027, with the gigafactories projected to become operational within 18 months of the contracts being signed.