Record 76 Proposals Signal Europe’s AI Gigafactory Race Is Accelerating

The European Union’s call for expressions of interest to build AI gigafactories has yielded an unprecedented response, with 76 proposals submitted from across 16 member states and 60 potential sites.

This overwhelming show of interest follows the Commission’s recent allocation of €20 billion to fund four to five state-of-the-art AI gigafactories, each designed to house approximately 100,000 next-generation AI chips.

The sheer volume and diversity of applications underscore a new era for European AI, one defined by ambition, scale, and a clear intent to close the technology gap with the US and China.

The proposals come from a wide spectrum of stakeholders, including EU and non-EU tech giants, data center operators, telecom providers, energy companies, and financial investors.

Collectively, these applicants have indicated plans to acquire at least 3 million advanced AI processors, highlighting the magnitude of Europe’s AI infrastructure ambitions.

Public-Private Partnerships Drive Strategic AI Infrastructure

At the heart of the EU’s gigafactory initiative is a public-private partnership model that seeks to de-risk massive investments while ensuring broad access to cutting-edge AI resources.

Direct public grants from the EU and member states will be complemented by significant private capital, with the European Investment Bank group playing a pivotal role in mobilizing and structuring the necessary funding.

This collaborative approach is designed to democratize access to AI infrastructure, enabling not just established tech firms but also startups, SMEs, and research institutions to leverage the continent’s most advanced compute facilities.

The model mirrors the success of Europe’s supercomputing network and aims to foster an open ecosystem where innovation flourishes across sectors as diverse as healthcare, climate science, and robotics.

Did you know?
The term “gigafactory” was originally coined for large-scale battery plants but has now become synonymous with massive compute centers powering the next generation of AI. Europe’s pivot from batteries to AI gigafactories marks a strategic shift in industrial policy, reflecting the growing importance of data and compute as critical resources for the 21st century.

Europe’s Bid to Regain Global AI Competitiveness

The surge in proposals signals a renewed determination within Europe to reclaim technological sovereignty and reduce reliance on foreign AI infrastructure.

With the US and China setting the pace in AI hardware and model development, the EU’s gigafactory push is both a defensive and offensive maneuver.

The planned facilities, each with computing power four times greater than today’s leading AI data centers, are intended to train and deploy models with hundreds of trillions of parameters, supporting mission-critical applications and industrial transformation.

Henna Virkkunen, the EU’s tech chief, emphasized that the response “exceeds far beyond our expectations and showcases Europe’s growing momentum and enthusiasm for innovating in AI,” reinforcing the bloc’s commitment to trustworthy, human-centric AI.

The initiative is a flagship for the EU’s broader €200 billion InvestAI strategy, which aims to cement Europe’s status as a global hub for ethical, responsible AI innovation.

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What Comes Next for the EU AI Gigafactory Initiative

The European Commission will now begin discussions with all 76 respondents to refine the scope and structure of the initiative. An official call for proposals is slated for the fourth quarter of 2025, coordinated by the EuroHPC Joint Undertaking, with legal finalization and the start of construction expected in 2026.

While not all proposals will advance to the final selection, the scale of interest provides the Commission with a robust pipeline of potential sites and partners.

The process will test the EU’s new Competitiveness Coordination Tool, designed to align industrial and research policies between Brussels and member states for maximum impact.

The Stakes for Europe’s Digital Sovereignty Are Rising

The race to build AI gigafactories is about more than infrastructure; it is a contest for digital sovereignty, economic security, and global influence. With the majority of proposals coming from European entities, the initiative is poised to strengthen the continent’s internal market for data and AI, enhance resilience against external shocks, and ensure that the benefits of AI innovation are widely shared.

The Commission’s strategy is clear: by rapidly scaling up AI capacity and fostering cross-border collaboration, Europe aims to lead not only in technological capability but also in setting global standards for ethical and responsible AI development.