The European Union has launched a formal tender for seven artificial intelligence gigafactories, backed by 10 billion euros in public funds. Aimed at closing the technology gap with the United States and China, the initiative requires at least 20 billion euros in private investment to build sovereign computing infrastructure by mid-2028.
The 10 Billion Euro Push for Sovereign Computing Infrastructure
The European Commission has officially opened the bidding process to build up to seven AI gigafactories across the bloc, a project designed to give European researchers and businesses the raw computing power needed to train frontier models. Initially conceived as a smaller network of four or five facilities following a proposal by European Commission President Ursula von der Leyen at the February 2025 AI Action Summit in Paris, the scope expanded after drawing preliminary interest from 76 potential consortia.
Public funding stands at 10 billion euros (equivalent to $11.5 billion), with Brussels contributing roughly 5 billion euros and supporting member states matching that amount. The Commission aims to attract an additional 20 billion euros in private capital, bringing the total estimated investment to roughly 30 billion euros. Under the current long-term budget, however, Brussels has committed only 1 billion euros, with the remaining public funding dependent on negotiations for the next Multiannual Financial Framework.
We cannot pre-empt the decisions about the next MFF.
a senior Commission official, via Euronews
Technical Scale and Chipmaker Agreements
The new gigafactories are designed to operate on an order of magnitude larger than the EU’s existing network of 19 smaller AI factories attached to regional supercomputers. Each facility will house at least 100,000 cutting-edge AI chips, making individual centres roughly four times more powerful than the largest data centers currently running in the European Union. These hubs will combine advanced AI processors, software stacks, cloud technology, high-speed connectivity, and energy-efficient data centers.
To secure the necessary hardware, the Commission has signed letters of intent with three major American chipmakers: Nvidia, AMD, and Qualcomm. This reliance on foreign suppliers has drawn scrutiny from critics who point out an inherent contradiction in building sovereign European infrastructure using non-European silicon.
Funding Structures and Public-Private Commitments
The financial model relies on a split where public funds act as a catalyst for private investment. Consortia comprising technology providers, cloud service providers, public entities, and investors can apply for the tenders before the deadline closes on November 12.
Geographic Distribution and Political Realities
Both single-country and multi-country consortia are permitted, with France already signalling its intent to develop a facility independently.
The initiative arrives as European leaders express growing anxiety over dependence on foreign cloud and AI services, which officials warn could be weaponized or disrupt operational continuity. A June report presented to the European Parliament noted that the bloc’s top five cloud service providers are all American, leaving local businesses struggling to work at the frontier.
At the same time, the project faces distinct structural hurdles. European electricity costs routinely run double or triple what they do in the United States and China, posing a severe constraint on power-hungry data centers. Policy researchers have also cautioned that loose requirements in the tender documents leave room for individual gigafactories to pursue fragmented local goals rather than a unified continental strategy.
Timeline and Next Operational Milestones
The procurement schedule moves forward through a staggered, two-phase approach designed to build capacity over a six-and-a-half-year period. Following the close of the tender process on November 12, the European Commission expects to announce successful bidders in early 2027. Physical construction is projected to begin shortly thereafter, with the first facilities scheduled to become operational by mid-2028.
