EU pledges €10 billion to fund up to seven AI gigafactories

The European Union has launched a major funding initiative to build up to seven artificial intelligence "gigafactories" across the bloc, committing 10 billion euros in public funds in a bid to close the technology gap with the United States and China. The European Commission announced the call for tenders on Thursday, July 30, 2026, aiming to attract at least an additional 20 billion euros in private investment for the massive computing facilities.

The planned gigafactories will combine advanced AI processors, software, cloud technology stacks, high-speed connectivity, and energy-efficient data centers. Each facility is expected to hold at least 100,000 cutting-edge AI processors, making them roughly four times more powerful than the data centers currently operating in the EU. These new sites will complement an existing network of 19 AI factories already established in various member states.

Executive Vice-President for Tech Sovereignty, Henna Virkkunen, stated that access to computing power on this scale is a strategic necessity for Europe as AI development accelerates. The initiative is a central pillar of the EU's push for technological sovereignty, seeking to reduce...