- The European Union launched a competitive call for tenders to establish up to seven AI Gigafactories across Europe
- The initiative combines up to $11.5 billion in EU and national funding with an expected $23 billion or more in private investment
- Selected projects are expected to begin construction in 2027 and become operational within 18 months after contract signature
The European Union on Thursday opened a call for tenders to establish up to seven AI Gigafactories across Europe, marking its latest effort to strengthen the region’s artificial intelligence capabilities and technological sovereignty.
How Will the AI Gigafactories Strengthen Europe’s AI Ecosystem?
The initiative is designed to provide large-scale computing resources for training and fine-tuning advanced frontier AI models. The facilities would support a broad range of users, including start-ups, scale-ups, small and medium-sized enterprises, industrial organizations, academic institutions and public authorities.
Each AI Gigafactory will integrate advanced AI processors, software platforms, cloud technology stacks, high-speed networking infrastructure and energy-efficient data centers. Together with Europe’s existing network of 19 AI Factories, the new facilities are intended to enhance the EU’s technological leadership, improve infrastructure resilience and advance strategic autonomy in AI development.
“The opening of the AI Gigafactories call represents a milestone in our AI Continent ambitions,” Henna Virkkunen, executive vice president for tech sovereignty, security and democracy. “Access to the raw scale of computing power within AI Gigafactories is a strategic necessity for Europe as AI development accelerates.”
How Is the Funding Structured?
Led by industry and supported by up to $11.5 billion in combined EU and national funding, the initiative is expected to mobilize at least $23 billion in private investment while significantly expanding Europe’s AI computing infrastructure.
The first funding lot will support up to four projects. Each project may receive up to $115 million in EU funding during phase one and an additional $461 million during phase two. Selected facilities must initially deploy at least as many advanced AI processors as are currently installed in Europe’s most powerful AI Factory, then expand capacity to at least three times that level during the second phase.
The second funding lot will support up to three larger-scale projects. Each may receive up to $230.6 million during phase one and an additional $922.7 million in phase two. These facilities will initially deploy up to twice the processor capacity of Europe’s leading AI Factory and expand to at least four times that capacity during the second phase.
Who Can Participate in the AI Gigafactories Program?
The competition is open to consortia or special purpose vehicles that bring together private companies, public organizations, investors and additional partners.
Project proposals will undergo a competitive evaluation managed by the European High Performance Computing Joint Undertaking, or EuroHPC JU.
The call for tenders will remain open until Nov. 12, with award decisions expected in early 2027. Selected AI Gigafactories are expected to become operational within 18 months of contract signing.
How Do the AI Gigafactories Fit Into Europe’s AI Strategy?
The AI Gigafactories initiative builds on the European Commission’s broader InvestAI strategy, unveiled earlier this year to mobilize €200 billion in public and private investment for artificial intelligence across the European Union. Through InvestAI, the Commission aims to accelerate the development of sovereign AI infrastructure, increase computing capacity and create an environment in which European companies can develop and deploy advanced AI systems at scale.
