The EU is ready to bet billions on data centers. Not all countries want in.
An EU industrial policy plan to build AI infrastructure is forcing European capitals to free up investment — or else fall further behind.
The European Union has committed to investing billions in the creation of seven large AI data centers, but not all member countries are on board. Two-thirds of EU governments have pledged funds, totaling around €3 billion, for the plan. However, nine countries have refused to commit money at a time when national budgets are already tight.
The United States has been leading the global race for AI compute power, with major tech companies like OpenAI and Elon Musk's xAI investing privately in projects. Meanwhile, the EU's Commission President Ursula von der Leyen announced plans to spend EU funds on establishing seven gigafactories, with three larger and four smaller ones, across the EU.
Governments have to commit to buying compute power from their national gigafactories project, matching or exceeding the EU's funding promises. When Member countries responded to the European Commission by late July, two-thirds of EU members pledged funding for industry consortia bidding for one of the seven hubs. The enthusiasm for the plan is matched by criticism, however, as politicians and experts question the business case behind the gigafactories.
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