EU Plans $30B AI Gigafactory Network Across 13 Locations

The European Union is advancing a $34.6 billion initiative to build a network of AI 'factories'—large-scale data centers housing over 100,000 GPUs each—to boost its AI computing capacity and compete with the U.S. and China. The program includes €10 billion for an initial 13 regional hubs and an additional €20 billion earmarked for gigawatt-scale facilities that could consume power comparable to midsize nuclear plants, posing significant energy and grid challenges. EU officials emphasize that although Europe has 30% more AI researchers per capita than the U.S., limited access to computing power has hindered startups and SMEs, which the AI factories aim to address by combining hardware, data, and expertise in centralized locations. Despite the ambitious public investment, concerns remain about attracting private capital and overcoming regulatory, energy cost, and infrastructure hurdles. The initiative is part of a broader strategy to establish technological sovereignty and foster a dynamic AI ecosystem across member states, with pilot sites already operational and larger projects planned in cities like Munich. Industry leaders like Nvidia's CEO have highlighted the importance of such infrastructure in driving an AI industrial revolution in Europe.