The European Commission has officially opened applications for companies and investors to build a new generation of AI data centers across the region, the next step in a flagship initiative to strengthen the continent’s technology infrastructure.
On Thursday, the EU’s executive branch called for bids from companies to build up to seven “AI gigafactories” across Europe. The program is backed by 10 billion euros in public funding, with total investment expected to be 20 billion euros including private capital.
The call gives companies the first chance to compete for contracts under the EU’s most ambitious technology sovereignty initiative, which aims to reduce Europe’s dependence on AI infrastructure from the US and Asia.
Applicants can bid on two types of projects. Four small-scale facilities, each equipped with at least 75,000 AI chips, will receive up to €500 million in public funding. The three big gigafactories, each requiring at least 100,000 chips, could receive up to 1 billion euros.
The projects are expected to start construction in early 2027, but will be rolled out in stages as much of the public funding still needs approval in the EU’s next long-term budget.
Of the promised public funds, only €2 billion is currently available. The remainder will need to be agreed as part of the bloc’s next multi-annual financial framework.
The announcement came after months of uncertainty over how the program would be funded. When the European Commission first announced plans for an AI gigafactory last year, it said 20 billion euros would be “mobilized” but did not say how much would come from public funds and private investment, with prospective bidders seeking more clarity.
While some procurement criteria may favor European companies, the European Commission said it has already signed letters of intent with U.S. chipmakers Nvidia, AMD and Qualcomm to ensure successful bidders have access to the hardware needed to build the facility.
