Key facts
- The EU is launching a €30 billion initiative to build seven large-scale AI data centers.
- The project combines €10 billion in public funding with an expected €20 billion in private investment.
- The data centers will be used to train advanced AI models and boost Europe's computing power.
- Winning bids will be selected by early next year, with facilities expected to be operational within 18 months of contract signing.
- National governments including Germany, Greece, Portugal, Italy, and Spain are backing the larger hubs.
The European Union has initiated a significant push to bolster its artificial intelligence capabilities by launching a tender for seven large-scale AI data centers, dubbed 'gigafactories.' This €30 billion endeavor, combining €10 billion in public funding with an anticipated €20 billion from private investors, aims to equip Europe with the substantial computing power needed to train advanced AI models and compete globally.
The initiative fulfills a commitment made by European Commission President Ursula von der Leyen to enhance Europe's technological sovereignty and reduce its dependence on U.S. and Chinese tech giants. The plan involves supporting four smaller data centers, each requiring 25,000 to 75,000 specialized AI chips, and three larger ones, powered by 40,000 to 100,000 chips.
Winning consortia will be selected by early next year, with a 18-month timeframe to construct the facilities. Public funding for smaller projects can reach up to €1 billion, while larger projects could secure up to €2 billion, not exceeding 35 percent of the total investment. Several EU member states, including Germany, Greece, Portugal, Italy, and Spain, are backing efforts for the larger hubs, while others like Czechia, Denmark, Finland, France, and Poland are vying for the smaller facilities.
Despite the ambitious plans, questions have been raised regarding sufficient demand from AI companies and potential continued reliance on foreign chip manufacturers, as advanced computing chips are predominantly U.S.-made. However, a senior Commission official countered that current infrastructure is already experiencing high demand and suggested that other providers could contribute to future upgrades.