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EU Aims to Build Seven AI Gigafactories with €10 Billion in Global AI Race

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July 31, 2026 12:48 PM IST | Written by Neelam Sharma | Edited by Pratima O Pareek

The European Union has launched a call for proposals to establish seven AI Gigafactories across Europe as it seeks to narrow the gap with the United States and China in the global AI race by expanding computing capacity and strengthening technological sovereignty.

The new facilities will complement Europe’s existing network of 19 AI Factories, providing access to start-ups, scale-ups, businesses, academia and public institutions for training, inference, and fine-tuning advanced frontier AI models.

Backed by up to €10 billion in combined EU and national funding, the programme is expected to attract at least €20 billion in private investment.

The Commission said it has also signed letters of intent with AMD, NVIDIA and Qualcomm, following the EU-US trade deal, to ensure project developers have access to the advanced AI hardware required for the Gigafactories.

The facilities will combine cutting-edge AI processors, software platforms, cloud infrastructure, high-speed connectivity and energy-efficient data centres. According to the Commission, large-scale sovereign AI infrastructure is becoming “increasingly important for Europe’s industrial competitiveness and technological sovereignty.”

Applications are open to consortia comprising companies, public entities, investors and other partners. The Gigafactories can be built within a single EU member state or distributed across multiple countries through cross-border AI computing infrastructure.

The call for proposals closes on 12 November 2026. Construction is expected to begin in 2027, with the selected AI Gigafactories scheduled to begin operations within 18 months of contract signing.

European Commission President Ursula von der Leyen said in a post on X that Europe aims to become the “first AI Continent,” adding that the Gigafactories will provide the computing power needed for advanced AI applications.

Also Read: Google, Apple Challenge EU AI Assistant Rules, Cite Privacy and Security Risks

Authors

  • Neelam Sharma, reporter at AI FrontPage

    Neelam Sharma is a passionate storyteller, and journalist with over a decade of experience across leading Indian media houses.
    Known for her calm presence on screen and powerful storytelling off it, Neelam brings a rare blend of credibility, creativity, and empathy to journalism. Her strength lies in ground reporting and research-driven narratives that connect with the heart of the audience. Whether covering social issues, human-interest features, or breaking news, she combines factual depth with a human touch—making every story not just informative.

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  • Pratima Pareek, Editor and Co-founder of AI FrontPage

    Pratima O Pareek is an Editor and Co-Founder of AI FrontPage. A gold medalist in Mass Communication and Journalism, she's worked across national and international newsrooms, bringing sharp editorial instincts and a commitment to clarity. She believes in cutting through the noise to deliver stories that actually matter.
    Off the clock, she watches offbeat cinema, follows tennis, and explores new places like a traveler, not a tourist.

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