The European Union has opened applications for the construction of up to seven AI-gigafactories in Europe, which will receive state support. This initiative is part of the bloc’s strategy to reduce dependence on foreign technologies and develop its own artificial intelligence infrastructure.
The AI-gigafactories will receive €10 billion ($11.5 billion) from the EU and its member states, along with approximately twice as much in private investments, the European Commission reported on Thursday. Currently, only €2 billion of public funds are available, while the remainder of the financing depends on the approval of the EU’s next budget.
The announcement of the competition marks the next stage of the regional strategy, which has faced delays, and the scale of financing remains significantly lower than investments in the United States, Asia, and individual countries in the Middle East. The EU views AI-gigafactories as a key component of its technological sovereignty strategy, aimed at reducing reliance on critical services from Silicon Valley and Asia.
Details of financing and types of AI-gigafactories
Expenditures on the construction of data processing centers in the United States exceeded $50 billion in April, according to the Census Bureau. In 2025, the EU first introduced the concept of AI-gigafactories, stating its intention to “mobilize” €20 billion, but did not specify the ratio of public and private financing at that time. As a result, some companies that planned to apply expressed dissatisfaction, as previously reported by Bloomberg.
The European Commission indicated that companies and investors can apply for two types of facilities: four AI-gigafactories with at least 75,000 AI chips, which can receive up to €500 million in public funding, and three larger facilities with a minimum of 100,000 chips, for which double the funding is available. Construction is scheduled to begin in the first quarter of 2027.
The projects will be implemented in two phases, as full scaling of the facilities will require funding that is still under negotiation. Some purchases may be reserved for European companies to support startups and fast-growing firms in the region. Meanwhile, the Commission emphasized that the EU has already signed letters of intent with AI chip manufacturers AMD Inc., Nvidia Corp., and Qualcomm Inc. as part of a trade agreement between the EU and the United States, “to ensure consortia have unimpeded access to the necessary equipment.”
Source: Bloomberg
