The European Union has launched an ambitious initiative to establish advanced AI centers, termed “AI gigafactories,” to bolster its position in the global AI race.
In April 2025, European Commission President Ursula von der Leyen announced the InvestAI initiative at the AI Action Summit in Paris, which includes a €20 billion ($21.4 billion) fund to finance the construction of up to five AI gigafactories across Europe.
These facilities are designed to train complex AI models, each equipped with over 100,000 next-generation AI chips, significantly surpassing the capacity of existing EU AI factories, which house up to 25,000 processors.
Unlocking Europe’s AI Future
The goal is to enhance Europe’s AI capabilities, reduce reliance on U.S. and Chinese technology, and support industries like healthcare, biotech, climate science, and robotics. The estimated cost per gigafactory ranges from €3 billion to €5 billion, with funding combining public money and private investment through the European Investment Bank.
The EU and EuroHPC launched a public consultation on April 9, 2025, inviting stakeholders to contribute ideas for developing AI GigaFactories in the EU.
A German consortium, including Deutsche Telekom, SAP, Ionos, and Schwarz Group, is actively negotiating to secure EU support for one of these gigafactories in Germany, with a deadline for expressions of interest set for June 20, 2025. This aligns with Germany’s coalition agreement to host at least one such facility.
Challenges include securing suitable sites, electricity, and AI chips, given Europe’s reliance on U.S. suppliers like Nvidia. The initiative also ties into broader efforts to develop a European AI chip industry, with discussions around the EU Chips Act review aiming to boost domestic chip production by 2030.
Posts on X reflect enthusiasm for the project, highlighting its geopolitical significance and potential to enhance Europe’s digital sovereignty, though they note hurdles like chip supply and energy demands. The initiative is part of a €200 billion broader investment to make Europe a leading AI hub, with facilities accessible to startups, researchers, and industries for mission-critical applications.
