The European Commission has announced an ambitious €20bn initiative to build advanced AI gigafactories as it seeks to transform Europe into a leading AI continent. The plan includes establishing three to five new facilities, each costing between €3bn and €5bn, that will house supercomputers with over 100,000 high-performance AI processors. These power-hungry centers are designed to support groundbreaking innovations in sectors such as healthcare, biotechnology, robotics, and advanced manufacturing.
Commission Vice-President Henna Virkkunen stressed that AI is central to enhancing Europe’s competitiveness, security, and technological sovereignty. “The global race for AI is far from over,” she declared, as the EU aims to catch up with the US and China countries that produced 40 and 15 influential AI models respectively in 2024, compared to Europe’s mere three.
The plan is to leverage public funding alongside private investment, with support from the European Investment Bank incentivizing participation through a dedicated financing facility. A major focus of the project is sustainability; the proposed gigafactories are expected to run primarily on renewable energy and implement innovative water recycling methods to mitigate their environmental impact.
In parallel, the Commission is reviewing aspects of the existing AI Act in order to reduce administrative burdens on businesses, a move that has drawn criticism from consumer advocates who warn that easing regulations could weaken safeguards against potential AI risks.
This bold strategy not only aims to accelerate Europe’s AI research and development but also to strengthen its overall industrial capacity as the continent positions itself to meet its 2050 net-zero targets. By transforming its technology infrastructure, the EU hopes to foster a new era of digital innovation and secure its place as a global leader in advanced technologies.
