EU to build AI gigafactories across Europe to close the gap with the US and China
Who’s up for the job?
Citi Data CentreFrankfurt, Hessen, Germany. View Pictures/Universal Images Group via Getty.
- The European Commission wants to unlock €20 billion in private investment plus €10 billion in EU support to close the computing gap with the US and China.
- Factories will give European startups, researchers, and public authorities access to AI infrastructure to train models without relying on foreign technology.
- AMD, Nvidia, and Qualcomm have agreed to supply necessary chips, though winners can choose European hardware instead.
- Bidding closes November 12, 2026, with facilities expected to be ready for use by the end of 2028.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
The European Commission has placed a public tender offering to build 7 so-called “AI gigafactories” to boost Europe’s computing capacity in the technological arms race to compete with the United States and China.
A great deal of money is involved in the matter. The executive arm of the EU expects to unlock €20 billion in private investments across European Member States. On top of that, the EU will support the initiative with an additional €10 billion.
The goal of the AI gigafactories is to keep pace with, or even surpass, the computing capacity of the US and China by providing start-ups, scale-ups, small and medium-sized enterprises, scientists, and public authorities with access to AI technology and infrastructure to train and fine-tune their AI models.
Stay updated with our latest stories and follow us on social media
Be the first to discover new stories, ideas, and updates from our team.
This way, Europe aims to become less dependent on other countries for AI technology, which is important to the European Commission because “as global AI adoption accelerates, access to large-scale sovereign AI infrastructure is becoming increasingly important for Europe's industrial competitiveness and technological sovereignty.”
According to the European Commission, AI tools developed in AI gigafactories will comply with EU standards for data protection, safety, security, and ethics.
To ensure that the companies that win the tender offering have access to the necessary hardware, the Commission has made arrangements with several major US hardware providers, including AMD, Nvidia, and Qualcomm. If they prefer, the winners can also opt for European hardware.
“The opening of the AI gigafactories call represents a milestone in our AI Continent ambitions. Access to the raw scale of computing power within AI gigafactories is a strategic necessity for Europe as AI development accelerates,”Henna Virkkunen, executive vice-President for tech sovereignty, security and democracy, said in a statement.
The bidding process closes on November 12th, 2026. The European Commission expects construction to begin early next year and for the factories to be ready for use by the end of 2028.
In April 2025, the European Commission adopted its AI Continent Action Plan to become a “global leader in artificial intelligence.”
“Artificial intelligence is at the heart of making Europe more competitive, secure, and technologically sovereign. The global race for AI is far from over. The time to act is now,” Virkkunen said at the time.
