EU Launches Call for Up to Seven AI Gigafactories

The European Commission has opened a public-finance call for proposals to build as many as seven large-scale AI “gigafactories” across the bloc. These facilities will house specialised chips and massive compute capacity needed to train next-generation large-language models. The procurement is split into two phases and is designed to expand capacity gradually over the next six and a half years.

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The plan traces back to a February 2025 announcement by European Commission President Ursula von der Leyen to replicate the CERN model for AI infrastructure. Initially limited to four or five sites, the scope was broadened to seven after 76 consortia expressed preliminary interest. The original €20 billion funding envelope has been scaled back: the public share now covers roughly one-third of total investment, with the EU itself slated to provide about €5 billion. Under the current budget the Commission can commit only €1 billion; the remainder is expected from the next Multi-annual Financial Framework (Multiannual Financial Framework (MFF)), whose final size remains under negotiation. A senior Commission official noted that the estimate reflects the amount likely available from the forthcoming MFF.

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Ten member states—Germany, Italy, France, Poland, Czechia, Denmark, Finland, Greece, Portugal and Spain—have signalled interest in hosting a gigafactory. Both single-country and cross-border consortia are permitted, and Paris has indicated it may pursue a solo project. To mitigate dependence on foreign chip suppliers, the Commission has signed memoranda of understanding with Nvidia, AMD and Qualcomm, and tender criteria will include safeguards against supplier lock-in. A senior EU official emphasized the need to balance rapid AI capability development with the goal of building European capacity.

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EU officials stress that private actors will bear all operating costs, while the public contribution secures a proportional share of compute access for public research, projects and AI labs chosen by member states. They also assert that the projects must become financially sustainable by offering commercial services, given the scarcity and value of AI compute.

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Physical construction of the selected gigafactories is slated to begin in early 2027, with facilities expected to be operational by mid-2028. Proponents argue that the network will reduce the EU’s reliance on non-European cloud and chip providers, bolster technological sovereignty, and position Europe to compete with the United States and China in advanced AI development. Critics warn that the model could favour wealthier member states and that the EU will still depend on foreign chip technology despite the new memoranda of understanding.

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