EU aims for seven AI gigafactories with €10 billion plan in race with US, China

By Foo Yun Chee

BRUSSELS, July 30 (Reuters) - The European Union will fund seven artificial intelligence gigafactories across the bloc with €10 billion ($11.5 billion), the European Commission said on Thursday, as the EU steps up efforts to close the technology gap with the U.S. and China.

The Commission said it aims to attract at least €20 billion in private investments for the projects. The total was increased from five planned gigafactories to seven following strong interest from EU countries.

The facilities will combine advanced AI processors, software, cloud technology, high-speed connectivity and data centres. They will come on top of the existing 19 AI factories 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," EU tech chief Henna Virkkunen said in a statement.

Consortia or special purpose vehicles made up of technology providers, cloud service providers, public entities and investors can apply to take part in the gigafactories.

The tender process will close on November 12. 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 provide chips to groups involved in the gigafactory projects.

($1 = 0.8715 euros)

(Reporting by Foo Yun Chee. Editing by Mark Potter)