EU opens bidding for seven AI gigafactories backed by €30 billion in public and private funds

The European Union on Thursday formally launched a call for consortia to build up to seven artificial intelligence gigafactories, backed by €10 billion in EU and national funds and an expected €20 billion from private investors, a combined package that could exceed €30 billion and ranks among the largest AI infrastructure initiatives globally. The initiative aims to equip the bloc with the massive computing power needed to train advanced AI models without relying on infrastructure in the United States or China.

Two-tier structure with chip counts and funding caps

The bidding process is split into two lots. The original target of five gigafactories was raised to seven after strong interest from member states. The first lot covers up to four smaller data centers, each powered by 25,000 to 75,000 specialized AI chips. Consortia can receive up to €100 million in an initial phase and up to €400 million later. The second lot targets up to three larger hubs with 40,000 to 100,000 chips, eligible for up to €200 million initially and €800 million in a subsequent stage. Proposals may come from consortia of technology providers, cloud operators, public bodies and investors, and the facilities can be built in a single member state or as cross-border projects.

Strategic necessity and the push for autonomy

Executive Vice-President for Tech Sovereignty Henna Virkkunen described the launch as a milestone.

Access to the enormous computing power of AI gigafactories is a strategic necessity for Europe as AI development accelerates.

The Commission stressed that the gigafactories, together with the existing network of 19 AI factories, would strengthen Europe's technological leadership, resilience and strategic autonomy.

With the European network of 19 AI factories, they will strengthen Europe's technological leadership, resilience and strategic autonomy.

The plan was first outlined in April 2025 and fulfills a promise made by Commission President Ursula von der Leyen at an AI summit last year. After months of delays that caused uncertainty among potential partners, Thursday's call marks the concrete start of what the EU describes as the world's largest public-private partnership for AI infrastructure. The push comes as the EU trails the US and China in AI development, with the gigafactories intended to reduce dependence on foreign infrastructure and enforce European rules on data protection, security and ethics.

Industry backing and chip supply

To ensure access to the necessary hardware, the Commission signed letters of intent with three American chipmakers: AMD, Nvidia and Qualcomm. The agreements are a follow-up to the EU-US trade deal and are meant to guarantee that consortia can source advanced processors. The Commission said the letters would ensure seamless access to the needed hardware. The gigafactories will combine those chips with cloud software, high-speed connectivity and energy-efficient data centers, and will be open to startups, universities, public institutions and small businesses.

Member state interest and next steps

Germany, Greece, Portugal, Italy and Spain are among the countries backing plans to host the largest hubs, according to POLITICO. Consortia have until 12 November 2026 to submit bids. The Commission expects to announce the selected candidates in early 2027, with the first contracts signed later that year. Once contracts are in place, the facilities must become operational within 18 months, putting the earliest launch dates in late 2028.

Funding breakdown

The maximum EU contribution per project varies sharply between the two lots, reflecting the different scales of the planned centers.