• 76 proposals submitted across 16 EU countries for AI “gigafactories”.
• Applicants pledge to install at least 3 million high-end AI chips.
What happened: Large wave of interest has hit the EU’s flagship AI gigafactory plan
The European Union’s ambitious plan to build its own large-scale AI infrastructure has taken a significant step forward. According to EU tech chief Henna Virkkunen, a total of 76 proposals were submitted in response to the bloc’s call for “AI gigafactories” — high-capacity data centres designed to support artificial intelligence development across Europe.
The bids span 60 proposed sites in 16 EU countries, reflecting a broad geographic interest and strategic diversity. Industry participants range from telecom giants and cloud infrastructure providers to energy firms and financial institutions, underlining the cross-sector urgency to accelerate Europe’s AI capabilities.
Each proposed site is expected to house around 100,000 state-of-the-art AI chips. Collectively, bidders pledged to acquire and deploy at least 3 million latest-generation GPUs, a commitment that significantly exceeds the initial expectations outlined in the EU’s roadmap. This surge in applications follows the February 2025 announcement of a $23.6 billion investment from the European Commission. The funding aims to support the buildout of four foundational AI gigafactory sites by the end of this year, before expanding further in 2026.
The European Commission will formally launch procurement later this year. In the meantime, it has been reviewing the scope, location, and technology stack of the proposals. The high number of bids demonstrates strong private-sector alignment with the EU’s AI industrial policy.
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Why it’s important
This marks a critical scaling of Europe’s AI infrastructure ambitions. By anchoring supply chains domestically, these gigafactories aim to help the EU catch up with AI powerhouses like the US and China. Geopolitically, the initiative forms part of a broader “sovereign AI” push echoed in recent endorsements from EU leaders. Success could reduce Europe’s reliance on overseas technology.
Yet, significant challenges loom: ensuring sufficient energy supply, sourcing vast numbers of GPUs amid global constraints, and preparing sites promptly. Additionally, with hardware rapidly becoming outdated, critics warn of technological obsolescence within a few years. For now, the sheer number of bids reveals strong faith that public funding can catalyse private investment, potentially enabling a rollout by late 2026—and placing Europe on firmer footing in the AI race.
