Europe Opens Bidding for Seven AI ‘Gigafactories’ in a €30bn Bid to Catch Up
The European Commission has launched a call for tenders to build up to seven AI "gigafactories," aiming to bridge the gap with American and Chinese AI capabilities. This ambitious project involves a public-private partnership, with Brussels and member states contributing around €10 billion, complemented by expected private investments of €20 billion.
The Gigafactory Vision
Each gigafactory is designed to house at least 100,000 cutting-edge AI chips, surpassing the current EU data centres’ capabilities by a significant margin. This initiative marks a step up from the existing network of 19 smaller "AI factories" attached to supercomputers, targeting the training of advanced frontier models previously accessible only to a select few US and Chinese labs.
A Response from Europe’s Tech Scene
An earlier expression-of-interest round received 76 responses from consortia across the continent, with ten countries expressing interest in hosting. France, in particular, has indicated its intention to proceed alone. The driving force behind this endeavor is the competitive concern of witnessing US and China investing heavily in AI infrastructure while European firms rely on American cloud services.
Financial Considerations and Challenges
Henna Virkkunen, the Commission’s tech-sovereignty chief, emphasized the necessity of such raw computing power, describing it as "a strategic necessity." However, only approximately €1 billion of Brussels’ share is currently committed, with the rest contingent upon the EU’s next long-term budget, the Multiannual Financial Framework (MFF), which remains unagreed.
A senior official acknowledged this uncertainty, stating that the €1 billion represents a "best estimate" rather than guaranteed funding. The construction timeline aims to begin in early 2027, with the first gigafactories operational by mid-2028, but historical delays and challenges suggest caution.
Supply Chain Dependence
The plan has faced setbacks since its initial proposal in early 2025, frustrating some potential partners. Additionally, there is an ironic twist: despite aiming to reduce reliance on US technology, the chips for these European gigafactories will predominantly be sourced from American companies such as Nvidia, AMD, and Qualcomm.