The European Union has made a bold decision to secure a leading place in the global race for artificial intelligence: the deployment of AI Gigafactories.
These colossal supercomputing centers, equipped with tens of thousands of cutting-edge chips, represent the fundamental commitment of a strategy designed to boost innovation, strengthen the technological sovereignty of the continent and reduce dependence on external suppliers.
Investment and development of Gigafactories
In February 2025, during the AI Action Summit in Paris, the InvestAI initiative was launched with the aim of mobilizing 200 billion euros in projects related to artificial intelligence.
Of that budget, 20,000 million will be used to finance the construction of up to five gigafactories.
Each facility will have approximately 100,000 AI chips capable of training models whose parameters reach hundreds of trillions, an unprecedented capacity in Europe.
The origin of this effort lies in the need to close the technological gap with the United States and China.
According to a 2024 Stanford University study, while the United States registered more than forty outstanding AI models and China fifteen, Europe only contributed three, all of them of French origin. Gigafactories must reverse this situation and place the continent at the forefront of research and development.
Main objectives
In addition to expanding computing power, the facilities pursue:
- Improve diagnostic accuracy in medicine through advanced image analysis.
- Optimize climate models to anticipate extreme events.
- Drive AI-based customer services and leisure experiences.
All activities must comply with the General Data Protection Regulation and the demands of the future AI Act, guaranteeing developments that respect privacy and ethics.
Market response and proposed locations
At the end of June 2025, the European Commission closed the expressions of interest phase with 76 proposals from 16 Member States and 60 candidate locations.
This enthusiasm reflects the commitment of diverse companies (data center operators, telecommunications multinationals and energy groups) together with several innovative startups.
It is known that Mistral, an emerging French startup supported by Nvidia, has shown special interest in these facilities to adapt its models to European regulation.
Chip manufacturers such as Infineon and ST Microelectronics also intend to benefit, seeing the initiative as an opportunity to strengthen the local supply chain.
Where will the AI Gigafactories be?
Among the cities competing are Vienna and Prague, with already consolidated infrastructures.
More unique proposals include Mora la Nova (Catalonia), where Endesa is exploring the use of local renewable energy, and Zbraslav (Prague), which plans to expand an existing 26MW data center to 77MW.
Energy challenges and sustainability
Gigafactories will demand a huge electricity supply, raising questions about their environmental impact. Currently, 47% of electricity in the EU comes from renewable sources, but the growth of these data centers could strain that proportion.
In Ireland, a leader in data center density, they consume more than 20% of the national electricity.
To avoid similar results, the EU is promoting projects that prioritize clean energy: the Swedish candidacy plans to take advantage of Västernorrland’s hydraulics and other proposals consider geothermal energy in Italy or Iceland.
However, environmental organizations have warned that, without rigorous planning, dependence on fossil fuels could increase.
Chip supply and technological autonomy
Access to next-generation GPUs, which cost more than $40,000 per unit, continues to be a challenge. Most come from manufacturers outside Europe and are subject to export restrictions.
To address this vulnerability, the European Parliament passed the Chips Act, aimed at encouraging local production of semiconductors.
However, according to Reuters in June 2024, the initial goals have not yet been met, forcing us to rely on mixed solutions in the short term.
Regulation, ethics and competitiveness
The EU is distinguished by its demanding regulatory framework for AI. The future AI Act will impose transparency, algorithm audits and risk assessment before deployment.
Although this approach guarantees the protection of fundamental rights, it also raises fears among companies about possible delays in the marketing of products.
While the United States and China opt for more flexible regulations to accelerate innovation, Europe argues that respect for ethics and privacy will generate greater social trust and, in the long term, broader use of AI.
Next steps and perspectives
The European Commission will launch the formal call for proposals at the end of 2025 under the supervision of EuroHPC, with a selection planned for mid-2026. If all goes according to plan, the first gigafactories could come into operation around 2028.
The success of this strategy will depend on the ability to solve energy challenges, ensure the supply of chips and balance regulations and competitiveness.
If achieved, Europe would strengthen its AI infrastructure and lay the foundations for a sovereign, ethical and sustainable digital economy.
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