EU opens applications for €10bn AI gigafactory scheme

On Thursday, the European Commission officially launched applications for companies and investors to construct advanced AI data centers across Europe, as part of its broader initiative to bolster the continent's technological infrastructure. This new program, dubbed the AI Gigafactories, is supported by €10bn in public funding and is expected to attract a total of €20bn in investment once private capital is factored in.

Applicants can compete for either four smaller facilities, each equipped with at least 75,000 AI chips and eligible for up to €500m in public funding, or three larger gigafactories, each with a minimum of 100,000 chips and eligible for up to €1bn. Construction of these projects is anticipated to commence in early 2027, although the rollout will be phased due to the ongoing approval process for the remaining public funding, which amounts to €2bn at present.

The exact allocation of this funding will depend on the EU's subsequent long-term budget. The EU's decision to open applications for these AI Gigafactories comes after months of uncertainty surrounding the program's financing. Initially, the Commission had claimed that €20bn would be mobilized, but the exact distribution between public and private sources remained unclear, prompting potential bidders to seek more information.

Despite some procurement criteria that may favor European companies, the Commission has already secured letters of intent with major US chipmakers Nvidia, AMD, and Qualcomm to ensure successful bidders have access to the necessary hardware for building the facilities.