The European Commission announced on Thursday that it will provide €10 billion in funding to establish seven artificial intelligence gigafactories across the European Union, part of a stepped-up effort to close the technology gap with the United States and China. The number of planned facilities was increased from five to seven after EU member states showed strong interest.
The Commission said the public financing is intended to be catalytic: it aims to draw in at least €20 billion in private investments to support the projects. The planned gigafactories will integrate a range of capabilities - advanced AI processors, software, cloud services, high-speed connectivity and data centre capacity - into large-scale facilities designed to provide substantial computing resources.
These new installations will be added to 19 AI factories that are already located in various EU countries. In a statement, EU technology chief Henna Virkkunen said, "Access to the raw scale of computing power within AI Gigafactories is a strategic necessity for Europe as AI development accelerates."
Applications to take part in the gigafactory projects will be accepted from consortia or special purpose vehicles. Eligible applicants can include technology providers, cloud service providers, public entities and investors working together. The Commission set November 12 as the deadline for tenders.
The selection process is expected to conclude in early 2027, when the Commission anticipates announcing successful bidders. Once contracts are signed, the facilities are planned to become operational within 18 months.
Chipmakers AMD, Nvidia and Qualcomm have signed letters of intent with the Commission indicating they would provide chips to consortia involved in the gigafactory projects. The announcement also noted the exchange rate used for reference: $1 = 0.8715 euros.
Context and implications
The Commission frames the gigafactory programme as a strategic push to secure large-scale compute capacity inside the EU. The combination of processors, cloud platforms, connectivity and data-centre infrastructure in each site is designed to offer integrated resources for AI development.
The tender timeline establishes clear milestones: a submission cutoff on November 12, selection announcements in early 2027 and a target for operational readiness within 18 months of contract signing. Participation by major chip suppliers is signalled by letters of intent from AMD, Nvidia and Qualcomm, but the projects remain contingent on the tender outcomes and the attraction of private capital.