New Delhi: The European Union has announced a €10 billion ($11.5 billion) investment plan to build seven artificial intelligence (AI) gigafactories across the bloc, marking a major step in its efforts to strengthen technological sovereignty and compete more effectively with the United States and China in the rapidly evolving AI sector.
The initiative, unveiled by the European Commission, is expected to attract at least €20 billion in additional private investment. The number of planned AI gigafactories has been increased from five to seven following strong interest from EU member states.
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The facilities will combine advanced AI chips, cloud computing infrastructure, software platforms, high-speed connectivity and large-scale data centres. They are designed to provide the massive computing power required to train and develop next-generation AI models and applications.
The new gigafactories will complement the 19 AI factories already under development across the European Union, forming part of a broader strategy to build a robust AI ecosystem and reduce reliance on foreign technology infrastructure.
According to the European Commission, consortiums comprising technology companies, cloud service providers, public institutions and private investors will be eligible to participate in the bidding process. The tender process will remain open until November 12, with successful applicants expected to be announced in early 2027.
The Commission said the selected projects should become operational within 18 months of contract signing, helping accelerate Europe's AI ambitions.
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Major semiconductor companies including AMD, NVIDIA and Qualcomm have already signed letters of intent to supply processors for the initiative, underscoring industry support for the programme.
The investment comes as governments worldwide race to secure leadership in artificial intelligence, a technology increasingly viewed as critical to economic competitiveness, innovation and national security. EU policymakers hope the project will strengthen Europe's AI capabilities, attract investment and position the region as a key player in the global AI race.
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