EU commits €10 billion to build seven AI gigafactories, aiming to compete with US and China
The European Union will fund seven artificial intelligence (AI) gigafactories across the bloc with €10 billion (about $11.5 billion), the European Commission announced on Thursday (July 30, 2026). The move marks an escalation in Europe’s efforts to reduce the technology gap with the United States and China.
The Commission said it aims to attract at least €20 billion in private investments for the projects. Originally planned as five facilities, the number was increased to seven after strong interest from EU member states.
These gigafactories will combine advanced AI processors, software, cloud technology, high-speed connectivity, and data centres. They will complement the 19 existing AI factories already operating in various EU countries.
“Access to the raw scale of computing power within AI Gigafactories is a strategic necessity for Europe as AI development accelerates,” said Henna Virkkunen, the EU’s technology chief, in a statement.
Consortia or special purpose vehicles comprising technology providers, cloud service providers, public entities, and investors can apply to participate in the gigafactories. The tender process will close on November 12, 2026. The Commission expects to announce successful bidders in early 2027, with the facilities becoming operational within 18 months of contract signing.
AMD, Nvidia, and Qualcomm have signed letters of intent with the Commission to supply chips to groups involved in the gigafactory projects.
